A proposal to reduce Pakistan Telecommunication Authority (PTA) tax on imported mobile phones from 25% to 18% is unlikely to be implemented in the upcoming budget, according to policy assessments.

Under the current framework, smartphones brought from abroad or imported into Pakistan require PTA registration through tax payment to remain fully functional. Higher-end devices, typically priced above $500, are taxed at around 25%, making them significantly more expensive for consumers.

The proposed change suggested a uniform reduction in PTA tax rates to 18%, aimed at easing the burden on overseas Pakistanis and frequent travelers who bring mobile phones into the country. However, the proposal is not expected to gain approval.

If implemented, the reduction could negatively affect local mobile assembly companies, including Airlink and LMC, as cheaper imported devices would increase competition for locally assembled phones.

In a separate policy consideration, authorities have also examined tax disparities within the IT and digital workforce. Salaried employees in export-oriented IT firms are taxed at rates between 5% and 20%, while freelancers often face much lower effective taxation of around 0.25% to 1%.

To address this imbalance, proposals include either reducing taxes for salaried IT workers or increasing taxes on freelancers. However, both options face strong policy and industry resistance, making significant changes unlikely in the near term.