Govt slashes regulatory duty on imported mobile phones by 20%

The federal government has officially slashed the regulatory duty on imported mobile phones by 20%, with the revised rates coming into effect from July 1, 2026. The move is expected to bring down the prices of imported smartphones across Pakistan, offering significant relief to consumers looking to purchase premium, mid-range, and budget devices. Industry experts believe the reduction in import costs could lead to noticeable price cuts as new consignments arrive in the local market. According to the Federal Board of Revenue (FBR), the 20% reduction in regulatory duty was approved as part of the 2026–27 federal budget and officially took effect on July 1. The objective of this measure is to reduce the financial burden on consumers, encourage legal imports, and create a more balanced tax and duty structure. The retail price of legally imported mobile phones in Pakistan includes several charges, such as regulatory duty, customs duty, sales tax, income tax, and the PTA registration fee. As a result, imported smartphones have traditionally been more expensive. With the reduction in regulatory duty, import costs are expected to decrease, leading to a gradual reduction in retail prices. Estimated Price Reductions According to initial estimates, the expected price reductions for imported smartphones are as follows:

• Phones priced at Rs. 50,000: Expected to become cheaper by approximately Rs. 4,000–6,000
• Phones priced at Rs. 100,000: Expected reduction of Rs. 8,000–10,000
• Phones priced at Rs. 150,000: Expected reduction of Rs. 10,000–12,000
• Phones priced at Rs. 200,000: Expected reduction of Rs. 12,000–14,000
• Phones priced at Rs. 300,000: Expected reduction of Rs. 15,000–20,000
• Phones priced at Rs. 400,000: Expected reduction of Rs. 20,000–25,000
• Phones priced at Rs. 500,000 or more: Expected reduction of Rs. 25,000–35,000

The actual price reduction may vary depending on the smartphone brand, model, import costs, PTA taxes, and other applicable duties. Government officials also stated that significant changes have been made to the duty structure for smartphones priced between US$200 and US$300. Since this price range represents the largest share of smartphone sales in Pakistan, middle-income consumers are expected to benefit the most from the revised policy. According to market sources, once importers begin bringing in new shipments under the reduced duty rates and pass the savings on to consumers, mobile phone markets across Pakistan are likely to witness noticeable price reductions in the coming days. This is expected to provide substantial relief to consumers planning to purchase new smartphones. Read more: KP govt allocates Rs351.1m for entertainment expenses in official offices