Print Print edition: 2026-01-09

FBR drafting plan to rationalise duties, taxes on import of mobile phones

Published January 9, 2026 Updated January 9, 2026 05:41am

3 min

By Sohail Sarfraz

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ISLAMABAD: The Federal Board of Revenue (FBR) is preparing a detailed plan for rationalizing duties and taxes on the import of mobile phones.

In this regard, the FBR is drafting a proposal for National Assembly Standing Committee on Finance.

The Cellular Mobile Operators (CMOs) had proposed to the FBR withdrawal of regulatory duty rates on telecom power equipment which are not locally manufactured. It also proposed rationalizing of duties on telecom equipment. Moreover, telecom services sector should be excluded from retail price list because they don’t import the goods for direct sale.

On Thursday, the FBR sources told Business Recorder that tax rates on the import of mobile phones should be rationalized. The FBR will also consult Pakistan Telecommunication Authority (PTA) in this regard.

The FBR has collected Rs82 billion in taxes on the import of mobile phones during 2024-25, whereas Rs18 billion was collected from high-end mobile phones (23 to 24 percent of the total collection from mobile phones).

Only a five percent duty is imposed on the import of mobile phones in CKD/SKD kits condition, which are assembled locally. Some local assembly lines are manufacturing mobile phones at prices starting from Rs15,000.

Tax authorities opined that if any valuation was found higher than market levels, it would be revised.

The average smartphone prices had recently decreased and said FBR could work with the Ministry of IT to rationalize taxes proportionate to actual market trends. Ninth Schedule of the Sales Tax Act directly deals with the mobile phone taxation.

According to FBR data, Rs82 billion in total mobile-related taxes and Rs18 billion specifically from smartphones were collected in the last fiscal year.

The NA committee members had argued against “the excessive taxes,” which had pushed even mid-range smartphones out of reach. They stressed that smartphones were no longer a luxury item but a “basic necessity” and said the long-used justification of being “in an IMF programme” could no longer be used to continue burdensome duties.

During the last meeting, the National Assembly Standing Committee on Finance further directed the Federal Board of Revenue (FBR) to prepare a comprehensive report on reducing the heavy taxes imposed on smartphones, amid growing criticism that current duties have made mobile phones unaffordable for ordinary citizens.

Standing Committee on Finance and Revenue chairman Syed Naveed Qamar had advised the Federal Board of Revenue (FBR) and the Tax Policy Office to revisit the prevailing tax rates applicable to mobile phone imports under the personal baggage and registration system.

In the past said meeting, representatives from the Pakistan Telecommunication Authority (PTA) rejected claims that the authority imposed any direct taxes, stating all duties were collected by the FBR.

The PTA Chairman added that 94 percent of smartphones used in Pakistan were locally assembled, while only 6 percent — primarily higher-end models — were imported. “Except for Apple, all major smartphone brands are now being manufactured in Pakistan,” tax officials added.

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