Smartphone Tax in Pakistan Hits 66%, Making Phones Extremely Expensive

Pakistanis are facing soaring smartphone prices, largely due to heavy taxation. Reports indicate that taxes on mobile phones can reach up to 66% of the device’s price, making premium smartphones almost as expensive as gold for consumers.

PTA Chairman Unaware of Exact Tax Rates
According to a report by Propakistani, the Pakistan Telecommunication Authority (PTA) Chairman admitted that even he does not have precise information on the tax levied on each smartphone. During a Senate Standing Committee session, he clarified that PTA does not directly collect these taxes and is not fully aware of the exact percentage applied to every phone.

Sub-Committee Formed to Address High Taxes
In an effort to reduce the heavy tax burden, a sub-committee was formed under the leadership of National Assembly member Naveed Qamar. The committee was created following claims that taxes on smartphones can reach as high as 66% of the device’s price.

To put this in perspective, if a phone costs PKR 50,000, the tax alone could amount to PKR 33,000, making the total cost PKR 83,000 for the consumer. Such high taxation has been cited as a major reason why smartphones in Pakistan are significantly more expensive than in neighboring countries.

Future Outlook
The sub-committee is actively working on measures to reduce mobile phone taxes, although PTA itself is not included in the committee. Consumers hope that these efforts will bring down prices, making smartphones more affordable in the near future.