Pakistan Reduces Imported Mobile Phone Duties by 20%

Pakistan’s federal government has announced plans to reduce the regulatory duty on imported mobile phones by 20% for the upcoming fiscal year. This decision is expected to significantly lower the prices of high-end devices imported into the country.

Sources indicate that the reduction could result in price cuts ranging from 10,000 rupees to 14,000 rupees for consumers. The Federal Board of Revenue (FBR) Chairman, Rashid Mahmood Langrial, briefed the National Assembly Standing Committee on Finance, stating that the measure would take effect from July 1, 2026.

Langrial emphasized that reducing the regulatory duty could lower the cost of imported phones and impact retail prices positively. However, he also noted that a large-scale reduction in duties for expensive or premium devices might lead to significant losses for the government’s revenue.

National Assembly member Qasim Gilani welcomed the development as positive, stating it would increase connectivity and improve public access to technology. He highlighted that before the amendments, the total tax burden on mobile phones could reach about 63%, with a high-end device priced at 200,000 rupees incurring approximately 106,000 rupees in taxes.

The FBR has approved an amendment for mid-range smartphones priced between $200 and $300, which could have a revenue impact of around 1 billion rupees. However, devices costing over $500 will remain subject to the existing 25% luxury GST rate.