ISLAMABAD: The government of Pakistan has announced a 20 percent reduction in regulatory duties on imported mobile phones under the federal budget 2026-27.
The decision is expected to provide relief to consumers purchasing imported smartphones. According to estimates, buyers may save up to Rs. 14,000 on some mobile phones after the new policy takes effect from July 1, 2026.
The announcement was made during a meeting of the National Assembly’s Standing Committee on Finance. Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial explained that the reduction is part of the government’s tariff rationalization policy.
He said the move would mainly benefit consumers buying expensive imported smartphones. However, he suggested that future tax relief should focus on lower-priced devices.
According to the FBR chairman, reducing taxes on handsets priced between $31 and $200 would support first-time smartphone buyers and middle-income users. He said such measures could make technology more accessible.
FBR officials informed the committee about the existing tax structure on imported mobile phones. Devices priced between $101 and $200 currently face a 40 percent tax. Phones valued between $201 and $350 have a 38 percent tax rate.
Meanwhile, mobile phones priced between $351 and $500 are subject to a 40 percent tax. The government collects duties based on the value of imported handsets.
The FBR chairman also shared data about the local market. He stated that around 95 percent of mobile phones used in Pakistan are assembled locally. Only about 5 percent of devices are imported.
However, imports have increased significantly in the past year. The number of imported units rose by 61 percent, increasing from 640,000 to 1.04 million devices.
The value of mobile phone imports also increased by 137 percent during the same period. This growth helped the government collect a record Rs. 36.9 billion through duties and taxes.
FBR data showed that premium smartphones costing above $500 make up only 16 percent of total imports. However, these devices contribute around 58 percent of the total tax revenue collected from imported handsets.
Rashid Mahmood Langrial defended the current taxation system and described it as fair. He said that buyers of more expensive phones pay higher taxes under the existing framework.
In other news read more about National Assembly Passes Finance Bill 2026 for New Fiscal Year
The reduction in regulatory duties is expected to influence smartphone prices and provide some relief to consumers. The impact will become clearer after the policy officially comes into effect.
