ISLAMABAD (HRNW) – According to global institutions and financial reports, Pakistan has now emerged as the leading country in the world for imposing the highest taxes on premium mobile phones and telecom charges relative to dollar value and income ratios. Recent economic data indicates that when a consumer registers a new flagship mobile phone—such as an iPhone or a Samsung—in Pakistan, or recharges a mobile network card, they are paying the highest additional charges to the government in the form of taxes globally.
Under the joint Customs Duty system of the Pakistan Telecommunication Authority (PTA) and the Federal Board of Revenue (FBR) established for mobile phone registration, a flat 25% sales tax, along with other regulatory and import duties, is levied on phones valued above 500 USD. Consequently, the cumulative tax on an expensive phone reaches 40% to 50% of its original cost. This rate equals, and in certain models even surpasses, the world’s most expensive markets, such as Brazil and Turkey.
Concurrently, reports from the Global System for Mobile Communications Association (GSMA) indicate that the aggregate tax collected on mobile card recharges and bills in Pakistan—which includes up to a 19.5% sales tax and a 15% withholding tax—presents the heaviest burden on telecom consumers compared to any other region in the world.
Beyond these sectors, Pakistan also levies an astronomical 200% to 250% tax on the original dollar value of fully manufactured imported luxury vehicles when combining regulatory and customs duties. This stands as a unique and unprecedented record globally, aimed primarily at curbing the outflow of US dollars from the country and reducing the burden of imported products on the local market.
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