ISLAMABAD: Smartphone users burdened by high Pakistan Telecommunication Authority (PTA) taxes will soon have the option to pay these charges in monthly instalments instead of a single large payment, providing significant financial relief.

PPP lawmaker Kasim Gillani announced this development on Monday, highlighting that the instalment plan would make the tax payments more manageable for consumers. He noted that this breakthrough came after nearly two years of persistent efforts aimed at alleviating the heavy tax load on imported smartphones.

Under the new scheme, users who previously faced PTA tax bills ranging from Rs100,000 to Rs250,000 will now be able to pay approximately Rs8,000 to Rs17,000 monthly. Gillani described this as a positive step toward easing the financial strain on consumers, while affirming his commitment to continue advocating for further tax reductions and concessions.

In a significant development earlier this year, the campaign to lower Pakistan’s steep mobile phone taxes gained traction in June. Lawmakers argued that mobile phones should be classified as essential items rather than luxury goods. During a National Assembly session on June 11, Gillani urged a review of the tax structure, emphasizing that excessive charges were making mobile devices unaffordable, especially for students and low-income groups. Federal Minister for IT and Telecommunication Shaza Fatima Khawaja also supported the cause, joining lawmakers in displaying placards that emphasized mobile phones as necessities.

Gillani linked the taxation issue not only to affordability but also to Pakistan’s digital divide, pointing out that mobile phones are crucial for education, business, communication, and access to online services. He argued that reducing taxes would expand access to digital technology for a broader segment of the population and lower financial barriers for ordinary users.

By June 22, some progress had been achieved, with changes in mobile phone taxation and registration policies marking a step forward. However, Gillani maintained that the ultimate goal should be the complete elimination of the PTA tax. The government had reduced the regulatory duty on imported mobile phones by 20 percent, with further cuts anticipated. Additionally, customs duties on mid-range devices priced between $200 and $300 were lowered. While these measures fell short of Gillani’s expectations, they nonetheless offered some relief to consumers.

A key outcome of parliamentary discussions was the introduction of an instalment-based payment mechanism for mobile phone registration taxes. An enabling provision was incorporated into the Finance Bill, mandating the Pakistan Telecommunication Authority and the Federal Board of Revenue to jointly devise a payment plan. This arrangement aims to allow consumers to spread large PTA tax payments over monthly instalments rather than paying the full amount upfront.

Gillani emphasized that the instalment facility would facilitate the registration of mobile phones that might otherwise remain unregistered due to high one-time payments. The proposal targets users facing tax bills of Rs100,000, Rs150,000, or Rs200,000, reducing their financial burden. These developments come after months of parliamentary debate, with lawmakers continuing to push for broader reforms and the eventual complete removal of the PTA tax.