The Federal Board of Revenue has confirmed that a 20 percent reduction in regulatory duty on high-end imported mobile phones will take effect from July 1, 2026, providing a saving of approximately Rs. 14,000 per device as part of the tariff rationalisation measures included in the federal budget for fiscal year 2026-27.
Federal Board of Revenue Chairman Rashid Mahmood Langrial shared these details while briefing the National Assembly Standing Committee on Finance on the Finance Bill 2026, describing the reduction as consistent with the government’s broader tariff rationalisation direction rather than a targeted intervention in the mobile phone sector specifically. At the same time, the chairman urged the committee to maintain the existing tax structure on imported mobile phones, arguing that the current framework is progressive in design, equitable in its application, and revenue-positive for the government, and that no wider restructuring of rate bands is warranted at this stage.
The FBR chairman pushed back against broader calls for across-the-board or premium-segment import duty cuts, presenting data showing that flagship smartphones priced above $500 account for only 16 percent of imported units but contribute 58 percent of total import tax revenue from the segment, generating Rs. 21.6 billion out of the Rs. 36.9 billion collected at the import stage. He argued that any significant reduction in duties on top-tier imported phones would primarily benefit the most affluent consumers while causing a disproportionate loss of government revenue, characterising such a move as a regressive transfer of public resources. He said that if any further relief were to be considered on imported mobile phones beyond the 20 percent regulatory duty reduction already approved, it should be limited strictly to the entry-level segment covering devices priced between $31 and $200, where a concession would reach price-sensitive first-time buyers at a relatively low revenue cost.
The FBR chairman also noted that approximately 95 percent of mobile phones used in Pakistan are locally assembled, with imported devices accounting for the remaining 5 percent of the market. Import volumes have nonetheless been growing sharply, with the number of mobile phone units imported rising 61 percent year-on-year from 0.64 million to 1.04 million units, while import value more than doubled by 137 percent and duty and tax collection from imported phones surged 136 percent to Rs. 36.9 billion. He said this growth was driven primarily by higher-value smartphones, and argued that the existing import duty structure has supported a revenue-generating market rather than restricting imports, with the tax burden increasing in proportion to device value in a way that reflects the premium nature of the market segment it covers.
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