A growing outcry over high taxes on smartphones and mobile device registrations has prompted the government to promise action, with lawmaker Qasim Gilani saying a parliamentary committee will review the issue next month.
Gilani, a member of the National Assembly and son of former Prime Minister Syed Yousuf Raza Gilani, has been lobbying across party lines to ease what he describes as unjust and unaffordable import taxes on smartphones and mobile registration fees. He noted that high end devices have become essential tools for work, education and digital income generation, not just luxury items.
He revealed that the government has assured him it will place the matter before the Finance Committee on December 3, where officials from the Federal Board of Revenue and other departments are expected to attend. Gilani added that he is seeking a meeting with Prime Minister Shehbaz Sharif and has already secured support from leaders across parties, including Bilawal Bhutto Zardari.
Details shared by Gilani illustrate the burden clearly. A mobile device priced above USD 500 can attract taxes of Rs27,600 plus 17 percent sales tax under passport registration, and even higher under CNIC registration. One reseller said the tax on a high end iPhone 17 Pro Max reaches Rs213,631 for CNIC based registration.
The Federal Board of Revenue stated that local assemblers produced more than 95 percent of the 34 million handsets sold last year, with only around 700,000 imported units entering the market. About 10 percent of these imports were iPhones. However, the high tariff structure continues to face criticism from users, start ups and the wider digital sector, who argue that it restricts access, slows innovation and limits income opportunities.
Industry stakeholders say the steep cost of devices reduces access to essential digital tools, harms freelancers trying to engage with the global economy and creates an additional barrier to Pakistan’s goal of expanding its IT and digital sectors. The upcoming parliamentary review is being closely monitored by operators, importers and technology groups.
As Pakistan pushes for wider digitalisation, education technology and remote economic participation, resolving the issue of excessive smartphone taxes could play a critical role in making digital access more affordable and supporting long term digital growth.