ISLAMABAD: The federal government has announced a significant reduction in duties and taxes on imported mobile phones valued between $101 and $200, providing relief to consumers and importers under the Finance Act 2026-27.
The revised tax structure, effective from July 1, lowers the overall tax burden on mid-range smartphones by reducing multiple levies imposed on imported devices.
Under the new framework, the regulatory duty on imported mobile phones in the $101-$200 category has been reduced from Rs. 7,500 to Rs. 6,000 per device, offering a direct relief of Rs. 1,500.
The government has also slashed income tax on these phones from Rs. 930 to just Rs. 100, reducing the tax liability by Rs. 830 per handset.
Additionally, the mobile phone levy has been cut substantially from Rs. 600 to Rs. 200, further lowering import costs and making smartphones more affordable for consumers.
However, the 18 percent sales tax applicable to imported mobile phones in this category remains unchanged.
The tax reductions follow earlier statements by Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, who informed the National Assembly Standing Committee on Finance and Revenue that the government was considering easing the tax burden on imported mobile devices priced up to $200.
During the committee meeting, Langrial highlighted the importance of mobile phone imports in revenue generation, noting that imported handsets contribute approximately Rs. 37 billion annually in taxes. He added that Apple smartphones alone account for nearly Rs. 21 billion of the total revenue collected from imported devices.
According to an FBR briefing presented to lawmakers, imported phones valued between $101 and $200 previously faced an effective tax burden of around 40 percent. Phones priced between $201 and $350 are taxed at approximately 38 percent, while devices valued between $351 and $500 face a 40 percent tax burden. Smartphones costing above $500 attract taxes of around 41 percent.
FBR officials further informed the committee that taxes on imported mobile phones range from Rs. 1,500 to Rs. 141,500 depending on the device’s value. Nearly 44 percent of imported handsets fall within the $31 to $100 price category, making it the largest segment of Pakistan’s mobile phone import market.
