The Pakistan Telecommunication Authority (PTA) has urged the government to reduce taxes and duties on smartphones, warning that high device prices could slow 5G adoption and hinder the country’s digital transformation.

In its recommendations submitted to the Ministry of Information Technology and Telecommunication (MoIT&T), the regulator said tax policy falls under the Federal Board of Revenue (FBR) but called for a more balanced taxation framework to improve smartphone affordability.

According to the PTA, heavy taxation has significantly increased the retail cost of smartphones, making them less accessible for low- and middle-income households, students, rural populations and first-time users. The authority recommended rationalizing duties on both locally assembled handsets and completely built units (CBUs), while maintaining measures to curb illegal imports and IMEI tampering.

The regulator noted that smartphones remain the primary gateway to the internet for millions of Pakistanis, enabling access to online education, telemedicine, digital banking, e-commerce, government services and other digital platforms. Higher handset prices, it said, are slowing smartphone ownership and broadband adoption.

The PTA also emphasized that widespread availability of affordable 5G-enabled smartphones is essential for a successful 5G rollout. Without lower-cost devices, consumers are less likely to upgrade, limiting the economic and productivity gains expected from next-generation mobile networks.

The authority further warned that excessive taxation could dampen demand for smartphones, reduce participation in the digital economy and discourage investment in Pakistan’s local handset manufacturing and assembly sector.

According to the PTA, lowering smartphone taxes may reduce revenue per device in the short term, but higher sales volumes would expand the user base, strengthen digital connectivity, support domestic manufacturing and generate broader economic and fiscal gains over time.