High taxes on smartphones could slow the adoption of 5G services in Pakistan, according to the Pakistan Telecommunication Authority (PTA), which has urged the government to rationalize taxes and duties on mobile devices to improve affordability, expand digital inclusion and support the country’s digital transformation. The regulator said it has submitted its recommendations to the Ministry of Information Technology and Telecommunication (MoIT&T), while noting that tax policy falls under the jurisdiction of the Federal Board of Revenue (FBR).

The regulator said it has submitted its recommendations to the Ministry of Information Technology and Telecommunication (MoIT&T), while noting that tax policy falls under the jurisdiction of the Federal Board of Revenue (FBR).

According to a PTA document, heavy taxation significantly increases smartphone prices, making devices less affordable for low- and middle-income households, students, rural communities and first-time users. The authority has recommended reducing taxes and rationalizing duties on mobile phones in a manner that supports both locally manufactured devices and completely built units (CBUs), while discouraging illegal imports and IMEI tampering.

The PTA said higher handset prices slow smartphone adoption and broadband penetration, limiting access to online education, telemedicine, e-government services, digital payments and other internet-based services that millions of Pakistanis rely on.

The document adds that successful 5G deployment depends not only on network investment but also on the widespread availability of affordable 5G-compatible smartphones. Higher taxes raise device prices, discourage upgrades and delay the economic and technological benefits of next-generation connectivity.

The regulator also warned that expensive smartphones restrict participation in the digital economy by limiting access to e-commerce, digital banking, freelancing, online businesses and digital content creation. It added that excessive taxation could also weaken demand for locally assembled devices and discourage investment in Pakistan’s handset manufacturing industry.

According to the PTA, rationalizing smartphone taxes may reduce tax collection per device in the short term, but greater affordability would increase smartphone adoption, strengthen digital connectivity, support local manufacturing, stimulate economic activity and ultimately expand the overall tax base.

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Do you think FBR really cares if 5G is adopted or not?? They only care about their recovery targets and how to fund their 150 new honda city vehicles!!