Imported mobile phones likely to get cheaper after 20% duty cut

Islamabad: The government has decided to reduce regulatory duty on imported mobile phones by 20% with the change expected to take effect from July 1, 2026.

According to details, the federal government has made a major decision in the FY2026–27 budget to cut regulatory duty on imported mobile phones.

Chairman FBR Rashid Mahmood Langrial informed the National Assembly’s Standing Committee on Finance that under the tariff rationalization policy, regulatory duty on high-end imported mobile phones is being reduced by 20%. This is expected to provide consumers with relief of up to Rs. 14,000 per phone.

He further stated that if further relief is to be provided, it should be focused only on low-cost imported phones in the $31 to $200 range as this would benefit first-time buyers from the middle class.

According to data shared by FBR officials, mobile phones in the $101–$200 range are currently taxed at 40% while those in the $201–$350 range face 38% tax and phones in the $351–$500 range are taxed at 40%.

Officials also revealed that 95% of mobile phones used in Pakistan are locally assembled while only 5% are imported. Over the past year, imports of mobile phones increased by 61% rising from 640,000 units to 1.04 million units.

The import value of mobile phones increased by 137% generating a record Rs. 36.9 billion in tax revenue for the government. Data shows that premium smartphones worth more than $500 account for only 16% of total imports but contribute 58% of total tax revenue.

The FBR chairman stated that the current tax system is balanced and fair as consumers who purchase more expensive phones pay higher taxes accordingly.