The federal government has announced a 20 percent reduction in regulatory duty on imported mobile phones as part of the Budget 2026-27, providing notable relief to consumers purchasing high-end devices. The measure will take effect from July 1, 2026, and is expected to reduce the cost of premium imported smartphones by approximately Rs. 14,000 per device.
Speaking before the National Assembly Standing Committee on Finance, FBR Chairman Rashid Mahmood Langrial confirmed that the reduction is part of the government’s broader tariff rationalization strategy. He explained that the relief applies to imported high-end phones and is aimed at adjusting the overall tariff structure while maintaining revenue stability.
Despite the reduction, the FBR has recommended retaining the existing tax framework for imported mobile phones. According to the chairman, the current structure is progressive, equitable, and capable of generating strong revenue. He stated that no major restructuring of tax bands is required, arguing that the existing system effectively balances affordability and government revenue collection.
The chairman also opposed wider import duty cuts, particularly for premium smartphones. He noted that flagship devices priced above $500 account for only 16 percent of imported phone units but contribute 58 percent of total import-stage tax revenue. These devices generated Rs. 21.6 billion out of the Rs. 36.9 billion collected from imported mobile phones during the year, making them a significant source of revenue for the government.
According to official data, mobile phone imports into Pakistan increased substantially during the year. Imported units rose by 61 percent, climbing from 640,000 units to 1.04 million units. The value of imports surged by 137 percent, while tax and duty collections increased by 136 percent. The growth was largely driven by demand for higher-value smartphones, while imports of feature phones priced below $30 continued to decline as consumers increasingly shifted toward smartphones.
The FBR chairman emphasized that around 95 percent of mobile phones used in Pakistan are locally assembled, with only 5 percent being imported. He suggested that if further relief is considered in the future, it should focus on phones priced between $31 and $200, where concessions would directly benefit first-time and price-sensitive buyers. He added that supporting local assembly through CKD and SKD incentives remains the most effective way to ensure affordable smartphones for the wider population while protecting government revenues.
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