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    Pakistan plans major relief on imported mobile phones as tax cuts and installment scheme proposed

    Imran MalikBy Updated:153 Comments2 Mins Read

    Pakistan is expected to reduce regulatory duties on imported mobile phones by up to 20 percent, with consumers also set to benefit from a new PTA tax installment plan.

    WEBDESK – MEDIABITES

    The Pakistani government is planning major relief measures for mobile phone consumers by reducing regulatory duties on imported devices and introducing an installment-based payment system for PTA taxes.

    Under the proposed changes, imported mobile phones are expected to become significantly cheaper from the new fiscal year beginning July 1, 2026.

    Currently, Pakistan imposes different tax slabs on imported mobile phones depending on their value. Basic phones priced up to $30 are subject to a 25 percent tax, while phones valued between $31 and $100 carry a 36 percent tax rate.

    Similarly, mobile phones worth between $101 and $200 are taxed at 40 percent, while devices priced between $201 and $350 are subject to 38 percent tax. Smartphones valued between $351 and $500 currently face a 40 percent overall tax rate.

    The heaviest burden applies to premium smartphones worth over $500, where taxes reach 41 percent. In some cases, total taxes on high-end devices can reach Rs141,500.

    According to traders in the mobile phone industry, the government’s proposed reduction in regulatory duties could lower the prices of imported mobile phones by up to Rs15,000.

    Industry experts also welcomed the Federal Board of Revenue’s proposal to allow consumers to pay PTA taxes in easy installments rather than a one-time lump-sum payment.

    They believe the move will provide financial relief to consumers struggling with rising smartphone costs and could improve affordability for middle-income buyers.

    However, market analysts warned that while these steps may offer temporary support to the industry, long-term growth would require a broader reduction in taxation levels to maintain consumers’ purchasing power and encourage business activity.

    The proposed reforms also include a reduction of up to 20 percent in regulatory duties imposed on imported mobile phones.

    At the same time, customs duty reductions on mid-range smartphones have also reportedly been approved under the Finance Bill.

    Experts say the combined impact of lower duties and installment-based PTA tax payments could revive demand in Pakistan’s mobile phone market, where consumers have faced soaring prices due to heavy taxation and currency depreciation in recent years.

    The new measures are expected to take effect from the upcoming fiscal year, starting July 1, 2026.

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