Monday, November 25, 2024

Pakistan Set to Start Crackdown Against Non-PTA, Patched Mobile Phones Over Huge Losses

The imposition of customs taxes on mobile phones in Pakistan, coupled with high PTA registration fees, has led to a surge in illegal practices, particularly IMEI tampering. As the government increased taxes on phones, especially high-end devices, individuals sought alternative, unauthorized methods to reduce costs. IMEI tampering involves altering the unique identification number of a device, often replacing it with a cheaper phone’s IMEI to evade taxes.

This illicit practice has become prevalent in local markets, where people use IMEI numbers from Nokia keypad phones for premium devices like Samsung. The authorities have identified a broader racket involved in smuggling mobile phones into Pakistan through countries such as the UAE. The cumulative impact of IMEI patching and smuggling has resulted in significant financial losses to the national exchequer, amounting to billions of rupees.

Law enforcement agencies are intensifying efforts to crack down on this illegal activity. Notably, mobile shop owners and online platforms engaged in IMEI patching are likely to face legal consequences. Additionally, the Pakistani government is taking measures to block websites like cpidserver.com, which provide IMEI patching services, aiming to curb this practice at its source.

To understand the financial implications for individuals, the Pakistan Telecommunication Authority (PTA) has established a Mobile Tax Calculator. The table below outlines the PTA registration fees based on the value of the mobile device:

Mobile ValuePTA Registration Fee
$1 to $30Rs550
$31 to $100Rs4,323
$101 to $200Rs11,561
$201 to $350Rs14,661 + 17% Sales Tax Ad Valorem
$351 to $500Rs23,420 + 17% Sales Tax Ad Valorem
$501 and aboveRs37,007 + 17% Sales Tax Ad Valorem

These fees reflect the escalating costs associated with higher-value mobile devices, aiming to ensure compliance with customs duties and taxes. The government’s stringent measures and the PTA’s fee structure are part of a broader strategy to address the challenges posed by illegal practices and protect national revenue.

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