PTA Mobile Tax Installment Plan Proposed in Pakistan as NA Committee Directs FBR Review

The National Assembly Standing Committee on Finance and Revenue has directed the Federal Board of Revenue (FBR) to explore the possibility of allowing installment payments for PTA mobile phone tax, in a move aimed at easing the financial burden on consumers across Pakistan.

In one of their recent committee meetings, legislators pointed out that many citizens are using mobile phones not approved by PTAs, while the current lump-sum tax system makes it difficult for many users who cannot afford the whole amount at once.

Some members of the committee also stated that in many countries even basic consumer goods are bought on installments and the same could be rolled out for mobile phone tax payments in Pakistan to make tax paying more convenient and compliant.

Committee Chairman Syed Naveed Qamar directed the FBR to work out the technical and financial feasibility of introducing a system of installment tax payments, in coordination with the Pakistan Telecommunication Authority (PTA).

The plan also helped spark a larger debate over the role of the current tax structure, as some legislators wondered if it is more about revenue or the mobile manufacturing industries in this area.

FBR officials have defended the current taxation structure on the ground that taxes on mobile have continued to be a significant source of government revenue. But the Finance Secretary warned that if the levy was cut or eased on low-cost mobiles, it would mean a loss of Rs1 billion and would need to be made up in other revenue sources.

The proposed tax installment scheme for the PTA could ease the way for consumers to legalise their phones and boost overall tax compliance in the telecom industry.