PTA clarifies it does not impose taxes on mobile phones
ISLAMABAD: Pakistan Telecommunication Authority (PTA) on Thursday clarified that it has no role in imposing taxes on mobile phone sets, countering a widely held public perception that the authority is responsible for the high cost of devices in the country.
Speaking at an CXO Global Summit held the Islamabad Chamber of Commerce and Industry (ICCI), Amer Shahzad, Director General at PTA, said the impression that PTA suggests or levies taxes on mobile phones “is completely incorrect”.
“PTA has repeatedly told various standing committees and forums that it has nothing to do with taxes on mobile devices,” he said. “These taxes are imposed by the Federal Board of Revenue (FBR) for revenue generation and, according to their claim, to curb smuggling and illegal imports.”
Amer Shahzad said the authority has consistently maintained that lowering or removing taxes would significantly increase mobile penetration, GSM uptake, and internet usage in the country, ultimately generating more revenue for the government through growth in digital services.
“Even PTA has informed the relevant authorities that if taxes are relaxed, mobile and broadband penetration will rise, and the country will earn more than what FBR is currently collecting,” he said. “But the finance division and FBR prefer short-term revenue targets of the financial year, which is why these taxes remain in place.”
The PTA official admitted that the high price of mobile phones, driven largely by heavy taxation is a major barrier to higher connectivity and data usage. He added that increased smartphone adoption would automatically justify public demand for more spectrum and faster internet services.
Telecom Sector Shows Steady Growth
During the summit, PTA also shared updated figures on Pakistan’s telecom sector performance over the last three years:
- Telecom subscribers increased from 193.5 million (2022-23) to 200 million (2024-25).
- Broadband subscribers rose sharply from 127.6 million to 150 million.
- Broadband penetration improved from 53.6% to 60.8%.
- Data usage surged from 20,235 PB to 27,887 PB.
- Cell sites expanded from 53,891 to 58,423.
Despite overall growth, telecom revenues dropped from PKR 955 billion in 2023-24 to PKR 803 billion in 2024-25, reflecting rising operational costs and currency challenges.
PTA said the numbers highlight the sector’s resilience and the growing reliance of citizens on digital services, further strengthening the case for reducing taxes on mobile devices to accelerate digital inclusion.
