Imported phones under $200 may get tax relief

June 21, 2026 (MLN): The government has signalled a possible reduction in taxes and duties on imported mobile phones valued at up to $200, as lawmakers turned up the heat on authorities to provide relief to consumers during a meeting of the National Assembly Standing Committee on Finance.

The possibility surfaced during a briefing by the Federal Board of Revenue (FBR) on the taxation regime for imported and locally manufactured mobile phones before the committee, chaired by MNA Syed Naveed Qamar.

FBR Chairman Rashid Mahmood Langrial informed the committee that the government could consider lowering duties on low-cost handsets, adding that such a move would have a relatively modest fiscal impact of around PKR1 billion.

Lawmakers, however, argued that the budget had failed to deliver meaningful relief to the public. Committee member Javed Hanif Khan criticized the government's fiscal measures, while MNA Bilal Azhar Kayani questioned the rationale behind introducing amendments to the Finance Bill without extending any tangible benefit to consumers.

Adding her voice to the debate, committee member Hina Rabbani Khar sought clarity on whether the taxation framework was primarily a revenue-generation measure or a means of protecting certain market interests. She maintained that mobile phones, now a necessity rather than a luxury, should not be burdened with such hefty taxation.

Defending the existing regime, the FBR chairman said taxes on imported mobile phones are a significant source of revenue and an integral component of the government's revenue targets. He revealed that the government collects nearly PKR37 billion annually from mobile phone taxes, with imports of Apple devices alone contributing around PKR21 billion.

Finance Secretary Imdadullah Bosal cautioned that any reduction in taxes on lower-priced handsets would leave a hole in government revenues that would need to be filled through alternative sources.

According to the FBR's briefing, imported mobile phones valued up to $30 attract an effective tax rate of 25%, while devices priced between $31 and $100 face a 36% levy. Handsets in the $101-$200 bracket are taxed at 40%.

Meanwhile, phones valued between $201 and $350 are subject to an effective tax rate of 38%, smartphones priced between $351 and $500 attract a 40% levy, and devices worth more than $500 bear an effective tax burden of 41%.

Officials told the committee that taxes per handset range from approximately PKR1,500 to PKR141,500 depending on the device's value, with the average effective tax rate across all imported mobile phone categories standing at 39.6%.

The committee also voiced concerns over the proliferation of non-PTA-approved mobile phones in the market and proposed introducing an installment-based mechanism for payment of taxes and duties on mobile devices.

Lawmakers urged the FBR and the Pakistan Telecommunication Authority (PTA) to work hand in hand and devise a plan enabling consumers to pay mobile phone taxes in installments, arguing that such facilities are commonplace around the world, even for small-ticket purchases.

The committee chairman directed both the FBR and PTA to come up with a workable proposal on the matter in forthcoming meetings.

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