Smartphone prices may drop as FBR ends regulatory duty on mobiles

The decision was approved by the National Assembly Standing Committee on Finance during a meeting chaired by former finance minister Syed Naveed Qamar. Lawmakers reviewed the current tax structure on imported and locally assembled mobile phones before supporting the proposal.

According to officials from the Federal Board of Revenue, the regulatory duty was mainly imposed on expensive smartphones. The committee recommended abolishing the duty after examining its impact on consumers and the digital economy.

FBR officials informed lawmakers that the additional tax burden mostly affected high-end devices. They said lower-priced smartphones were not significantly impacted by the regulatory duty.

Committee members raised concerns over the government’s failure to deliver the tax relief promised in the Finance Bill 2026–27. Lawmakers said previous assurances to reduce mobile phone taxes had not been fulfilled.

Committee member Ali Kasim Gilani said he had been highlighting the issue for the past six months. He stressed that high taxes on smartphones could slow down the government’s digital transformation goals.

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“Despite assurances given to parliament, no relief was provided in mobile phone taxes and duties,” Gilani said. He added that smartphones are now essential tools for education, business and access to digital services.

The committee chairman also warned that excessive taxation was creating barriers to technology adoption. Lawmakers urged the government to introduce a balanced and long-term policy for mobile phone taxation.

Many consumers are now waiting to see whether the removal of regulatory duty will lead to lower retail prices. The final impact on smartphone costs will depend on how quickly importers and sellers pass on the tax relief to buyers.

Removing the regulatory duty could make premium smartphones more affordable for consumers. It may also encourage more people to use digital services and online platforms.

However, the actual price reduction will depend on other taxes, exchange rates and market conditions. Experts believe broader tax reforms may still be needed to make smartphones accessible to more people.