The federal government has reduced duties and taxes on imported mobile phones with a customs value of $101 to $200, lowering the overall tax burden on mid-range devices from July 1 under the Finance Act 2026-27.
The biggest relief comes through a cut in regulatory duty, which has been reduced from Rs. 7,500 to Rs. 6,000 per device, providing relief of Rs. 1,500.
The income tax on this category of imported phones has also been slashed from Rs. 930 to Rs. 100, reducing the tax by Rs. 830.
In addition, the mobile levy has been lowered from Rs. 600 to Rs. 20*, giving importers and buyers another Rs. 400 in relief.
The 18 percent sales tax on imported phones in the $101-$200 category remains unchanged.
The tax cuts follow earlier indications from 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 reducing taxes on imported mobile phones priced up to $200.
During the committee meeting, Langrial said imported mobile phones generate around Rs. 37 billion in annual tax revenue, with Apple devices alone contributing about Rs. 21 billion.
According to an FBR briefing shared with the committee, imported phones valued at $101-$200 previously faced an effective tax burden of around 40 percent. Phones priced between $201 and $350 are taxed at 38 percent, those between $351 and $500 at 40 percent, while devices costing more than $500 attract a 41 percent tax. The effective average tax rate across all imported phone categories stands at 39.6 percent.
FBR officials also told the committee that taxes on imported phones range from Rs. 1,500 to Rs. 141,500, depending on the device’s value, while nearly 44 percent of imported handsets fall within the $31-$100 price bracket.
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