The Federal Board of Revenue (FBR) has finally allowed individuals to pay the applicable sales tax on imported mobile phones in installments, providing relief to consumers who previously had to arrange the full tax amount at once.
The facility comes more than two months after the government announced plans to introduce an installment option for PTA taxes on imported mobile phones.
The new arrangement will operate through the Pakistan Telecommunication Authority’s Device Identification, Registration and Blocking System (DIRBS).
FBR Approves Mobile Tax Installment Facility
The FBR introduced the installment facility through a new provision added to the Ninth Schedule of the Sales Tax Act, 1990.
The details were explained in FBR Circular No. 1 of 2026, issued on September 11.
Under the new provision, individuals will no longer necessarily have to pay the entire applicable sales tax on an imported mobile phone in a single payment. Instead, they can divide the liability into multiple installments.
However, the facility comes with an important condition.
All installments must be paid before the end of the financial year in which the mobile phone is imported.
This means consumers will receive greater flexibility in managing the tax payment, but the complete tax liability must still be cleared within the prescribed period.
PTA Yet to Introduce Payment Mechanism
Although the FBR has now formally allowed installment payments, the implementation of the facility will depend on the Pakistan Telecommunication Authority (PTA).
The PTA is expected to introduce the necessary mechanism through DIRBS to enable individuals to make their tax payments in installments.
Until the PTA establishes the operational process, consumers may have to wait for further instructions regarding how and when installment payments can be made.
The move therefore represents an important regulatory step, but the practical implementation still requires coordination between the FBR and PTA.
Facility Introduced Through Finance Act 2026
The installment option was introduced through amendments made under the Finance Act, 2026.
The changes provide individuals with greater flexibility when paying the sales tax applicable to imported mobile devices.
However, the amendment does not remove the tax liability. Instead, it allows the amount to be divided into installments while requiring the full liability to be paid within the financial year in which the phone is imported.
This distinction means consumers will still be responsible for the complete applicable tax amount.
How DIRBS Is Involved
The installment facility will be linked to DIRBS, the system used to identify and regulate mobile devices operating on Pakistan’s cellular networks.
Pakistan introduced DIRBS in December 2018 to identify unregistered mobile phones and block devices that did not meet applicable tax and registration requirements.
The system has since played a central role in ensuring that imported mobile phones comply with Pakistan’s tax and registration rules.
The new installment arrangement is expected to be incorporated into this existing digital framework.
Imported Phones Require Tax and Registration
Imported mobile phones brought into Pakistan have generally been subject to applicable duties and taxes before they can be registered for use on local cellular networks.
This has placed a significant financial burden on individuals importing expensive smartphones, particularly when the applicable tax represents a substantial portion of the device’s value.
The installment facility could make the immediate financial impact easier to manage for eligible consumers, although the full amount will still need to be paid within the specified financial year.
Duty-Free Facility Was Previously Withdrawn
Pakistan also withdrew the duty-free facility for mobile phones brought into the country by travelers from abroad in July 2019.
Since then, individuals bringing imported devices into Pakistan have generally been required to meet the applicable tax and registration requirements before using the phones on local networks.
The introduction of an installment option therefore represents a change in how the tax liability can be paid rather than a reduction or elimination of the applicable duties and taxes.
What Consumers Need to Know
For people planning to bring an imported mobile phone into Pakistan, the new facility could provide more flexibility in managing the applicable sales tax.
However, consumers should keep in mind that the installment facility does not eliminate their tax liability.
The full amount must be cleared before the end of the financial year in which the phone is imported.
The next major step is for the PTA to establish the mechanism through DIRBS and provide details about the registration and payment process.
Once the system is operational, eligible individuals will have an alternative to paying the entire applicable sales tax upfront.
The FBR’s decision marks a significant development for imported mobile phone users in Pakistan, particularly those who face difficulty paying the full tax amount at once. The effectiveness of the facility will ultimately depend on how quickly and efficiently the PTA implements the installment mechanism through DIRBS.
Also read: FBR Extends Anti-Smuggling Powers Until June 2027
