THE recent decision by the FBR’s Directorate General of Customs Valuation to increase the ‘assessed value’ of various models of used mobile phones being imported into the country suggests that our tax authorities increasingly view technology as something to extract value from even before it has created any for its user. It is, of course, symptomatic of the general approach our tax authorities take; ie, relying on ‘easy’ ways to squeeze revenue out of citizens as general economic activity falters. Plainly put, the revision to the assessed values of older mobile phones will allow customs authorities to charge higher taxes per set, thereby making them more expensive for ordinary citizens to buy. The question is: why do the authorities want to widen the digital divide that already exists between the haves and have-nots?

While taxing the latest phone models is reasonable, as it is in some ways a tax on the luxury of buying the most cutting-edge devices available to the world, it makes little sense to treat older and used devices the same way. It seems the government wants greater localisation of mobile manufacturing, but protectionist policies do not usually benefit consumers. Used and older-generation smartphones have so far been the most accessible way for citizens to upgrade to higher-quality devices. Their alternative is brand new, locally produced ‘budget’ smartphones with low-spec hardware that is considerably less efficient. This government has put much of its focus on powering future growth through the digital economy. Why, then, is it making it harder for the youth to keep up with the rest of the world? The same is true for the many taxes imposed these days on subscriptions for digital tools and services. The government should concentrate on taxing economic output and enforcing compliance while encouraging technology adoption through tax and other incentives. Its current policies seem to be quite counterproductive to its stated goals.

Published in Dawn, April 25th, 2026