PTBP Web Desk
The National Assembly’s Standing Committee on Finance and Revenue is set to hold a pivotal session this Wednesday to examine the taxation and valuation framework on imported mobile phones, with particular attention to issues faced by overseas Pakistanis.
This meeting, the twentieth of the Committee, will feature a joint briefing from the Federal Board of Revenue (FBR) and the Pakistan Telecommunication Authority (PTA). Officials will outline the current rules governing the import of new and refurbished mobile devices, including the high taxes imposed during IMEI registration, which have long been a subject of debate among consumers and policymakers.
Lawmakers have extended a special invitation to Makhdoom Syed Qasim Gillani, a prominent critic of the current mobile phone taxation system. Gillani has repeatedly described the taxes as “unjust and unaffordable”, emphasizing that smartphones are essential for Pakistan’s youth, freelancers, digital workers, and overseas nationals rather than luxury goods.
His participation is expected to highlight the broader challenges faced by overseas Pakistanis, who often find the cost of legally importing mobile devices prohibitively high due to existing duties.
Ahead of the committee hearing, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) formally appealed to both the FBR and the parliamentary committee leadership to rationalize the tax structure.
In a letter dated December 1, 2025, the FPCCI noted that excessive taxes discourage legal imports, place a financial burden on consumers, and slow Pakistan’s digital economy ambitions. The business group proposed the creation of a joint working group comprising the FBR, PTA, Ministry of Information Technology and Telecommunication, and FPCCI representatives to design a more balanced taxation framework.
Such a framework would aim to:
- Encourage legal imports of smartphones
- Support local assembly and manufacturing
- Promote digital inclusion
- Reduce grey market inflows
Proponents argue that a reformed mobile phone taxation regime could significantly strengthen Pakistan’s technology sector. By reducing import barriers and making devices more affordable, the country could see increased adoption of digital services, which is critical as Pakistan prepares for a 5G mobile network rollout and seeks to expand its tech sector footprint.
Moreover, reforming taxes could stimulate the local smartphone assembly industry, create jobs, and increase revenue collection by shifting consumers away from grey market imports to regulated channels.
Critics caution that without concrete reforms, high costs will continue to hamper consumers and slow the adoption of mobile and digital services.
The current taxation framework, especially during the IMEI registration process, has been criticized for creating unnecessary barriers to legal imports while failing to fully address grey market proliferation. Observers believe that aligning tax policy with technology sector growth strategies is essential to unlock Pakistan’s potential in digital services, fintech, and innovation-driven industries.
During the session, lawmakers and regulators will review:
- Current tax and valuation rules for mobile imports
- The effectiveness of IMEI registration fees
- Challenges faced by overseas Pakistanis
- Recommendations for a balanced and equitable tax regime
The committee is expected to discuss the formation of the proposed working group, ensuring all stakeholders—including government bodies, industry representatives, and overseas community leaders—participate in the design of a fair and sustainable taxation framework.
