ISLAMABAD: The federal government has reduced the regulatory duty on imported mobile phones by 20 percent under the Budget 2026-27. The revised rates will take effect from July 1, 2026.
Speaking before the National Assembly Standing Committee on Finance, FBR Chairman Rashid Mahmood Langrial said the reduction will apply to high-end imported mobile phones. He added that consumers will receive relief of around Rs. 14,000 per device under the tariff rationalization policy.
Duty Relief and Tax Policy
However, Langrial urged lawmakers to retain the existing tax structure on imported mobile phones. He said the current system remains progressive, equitable, and capable of generating sustainable revenue. Therefore, he opposed restructuring the existing rate bands.
Moreover, the FBR chairman rejected broad reductions in import duties. He argued that premium imported phones generate most import revenue and are mainly purchased by affluent consumers. According to him, further relief for that segment would disproportionately benefit wealthier buyers.
He also recommended that any additional concession should target imported phones priced between $31 and $200. This approach, he said, would support first-time and price-sensitive buyers while limiting revenue losses.
Imports Rise Despite Local Assembly
Meanwhile, Langrial noted that nearly 95 percent of mobile phones used in Pakistan are assembled locally, while only 5 percent are imported. He emphasized that local manufacturing remains the key driver of affordable smartphones and urged the government to preserve CKD and SKD concessions.
According to the latest import data, Pakistan imported 1.04 million mobile phones during the year, up 61 percent from 0.64 million units. Furthermore, import value jumped 137 percent, while duty and tax collections increased 136 percent to Rs. 36.9 billion.
