The government has announced a 20 percent cut in regulatory duty on imported high-end mobile phones in the 2026-27 budget, with the relief set to take effect from July 1, 2026.
FBR Chairman Rashid Mahmood Langrial informed the National Assembly Standing Committee on Finance that the reduction would provide relief of around Rs. 14,000 on each imported high-end phone. He said the measure forms part of the broader tariff rationalisation policy.
At the same time, the FBR chairman urged lawmakers to retain the existing tax structure for imported mobile phones under the Finance Bill 2026, arguing that the current regime is progressive, equitable and capable of generating revenue. He said no restructuring of rate bands was needed.
Langrial opposed across-the-board or top-tier import duty cuts, saying premium imported phones contribute the bulk of import revenue and are bought mainly by affluent consumers. Any major relief in that segment, he said, would amount to a costly transfer of benefits to higher-income buyers.
He told the committee that around 95 percent of mobile phones used in Pakistan are locally assembled, while only 5 percent are imported.
The FBR chairman said that if any further relief is considered for imported phones, it should be limited to the entry segment priced between $31 and $200. According to him, this is the only segment where concessions would benefit price-sensitive first-time buyers without causing a major loss to revenue.
He added that Pakistan’s large share of locally assembled phones remains the main source of affordable access for young consumers, and said concessions on CKD and SKD components should be preserved to support lower prices in the mass market.
According to the latest import data, mobile phone imports into Pakistan rose by 61 percent during the year, increasing from 0.64 million units to 1.04 million units.
The value of those imports more than doubled, rising by 137 percent, while duties and taxes collected on imported phones surged by 136 percent to Rs. 36.9 billion.
Langrial said the growth was driven mainly by higher-value smartphones, while the only declining category was sub-$30 feature phones as consumers shifted toward smartphones.
He said the existing import duty structure had supported a revenue-generating market rather than restricting imports, with the tax burden increasing in line with the value of devices.
The FBR also told the committee that flagship smartphones priced above $500 account for only 16 percent of imported units but contribute 58 percent of total import tax revenue, generating Rs. 21.6 billion out of the total Rs. 36.9 billion collected at the import stage.
Langrial said reducing duties on premium imported phones would mainly benefit high-income consumers while offering little advantage to the wider market, most of which is served by locally assembled devices.
