Pakistan cuts imported mobile phone tax by 89% for these smartphones
Advance income tax cut by 89%
The federal government has reduced the advance income tax on imported mobile phones in the $101 to $200 price range from Rs930 to Rs100 per handset. This represents a cut of about 89% in the tax.
The mobile handset levy has also been reduced from Rs600 to Rs200. However, sales tax rates remain unchanged, so buyers will still have to pay other applicable taxes and duties.
What the new tax rates mean for buyers
The lower charges could reduce the cost of importing smartphones in this price category. However, the final retail price will depend on the phone’s value, other taxes and duties, and the seller’s pricing.
Consumers may not see the full tax reduction reflected in shop prices. The actual savings will depend on whether retailers pass the lower charges on to customers.
Government introduces tax relief measures
The reductions are part of the federal government’s tax changes under the Finance Act 2026-27. The government has also reduced regulatory duties on imported mobile phones across several price categories.
Finance Minister Muhammad Aurangzeb told the National Assembly in a written reply that the announced relief had been implemented. He also said the government was not currently considering further changes to taxes on imported mobile phones.
Will smartphone prices fall further?
The tax cuts may provide some relief to people buying imported smartphones, especially those in the $101 to $200 range. However, the unchanged sales tax and other applicable charges mean that the overall cost will not fall by 89%.
Buyers will need to compare prices across retailers to see whether the tax savings have reached the market. The impact will become clearer as sellers adjust their prices under the revised tax structure.
The government has reduced some costs linked to imported mobile phones, which could help buyers. But lower taxes do not automatically mean equally lower shop prices.
The main issue is whether retailers pass the savings on to customers. Buyers should check the full price and applicable taxes before making a purchase.
Also read: PTA system now detects unregistered mobile phones and illegal devices
