Federal Minister Tariq Fazal Chaudhry has said that the government is considering a proposal to abolish the mobile phone tax, according to reports on Thursday.
He said that the government had to take several difficult economic decisions because of the country’s financial situation.
However, he confirmed that authorities are now checking the possibility of ending the mobile phone tax collected through PTA registration and customs duties.
Tariq Fazal Chaudhry further explained that imported mobile phones are automatically blocked after a few weeks if they are not registered on local networks.
He then said that the phones that are brought from abroad stop working if users do not complete the PTA registration requirements, and there are many complaints about it.
Govt ‘to cut taxes’ on vehicles
In another development, the government is considering to reduce taxes on raw materials used in locally made vehicles in the upcoming budget 2026–27, according to the reports.
According to the details, it is also proposed that the average tax rate on locally manufactured vehicles should be kept below 6 per cent.
According to the reports, new plans are being made to support the local car industry. These changes may be included in the new budget and auto policy starting from July 1.
This includes electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles. These vehicles may get lower tax rates.
Reports further say that the reduced customs duty on CKD parts may continue until June 30, 2028.
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There may also be exemptions for electric bikes, rickshaws, and some vehicles under specific duty conditions, the reports say.
Locally assembled electric vehicles are expected to get more protection in comparison to fully imported ones.
The proposals also suggest keeping the average tariff on locally manufactured cars below 6 per cent. In addition to this, duties on imported petrol vehicles will be slowly reduced.
The federal budget for 2026–27 is expected in early June 2026 and will take effect from July 2026.
