Paying a hefty PTA tax in one go can be a major challenge for citizens who order expensive mobile phones from abroad or bring them into Pakistan. However, this financial burden is now expected to ease to some extent.
The Federal Board of Revenue (FBR) has allowed sales tax imposed on imported mobile phones to be paid in instalments.
The government had announced the instalment facility for mobile phone taxes more than two months ago, and the FBR has now formally moved forward with its implementation. Under the new facility, individuals will be allowed to pay the total tax amount on a mobile phone in instalments instead of paying the entire amount at once.
FBR decision
The FBR introduced the facility by adding a new provision to the Ninth Schedule of the Sales Tax Act, 1990. The change was explained in FBR Circular No. 1 of 2026, issued on September 11.
However, the instalment facility does not mean that the tax liability will be waived or indefinitely deferred. Under the new provision, an individual importing a mobile phone will have to pay all instalments in full before the end of the relevant financial year.
The change has been introduced under amendments made through the Finance Act 2026, with the aim of providing individuals with greater flexibility in paying applicable taxes.
How will the system work?
Following the creation of the legal framework by the FBR, attention will now turn to the Pakistan Telecommunication Authority (PTA). The practical mechanism for collecting taxes in instalments will be introduced through the Device Identification, Registration and Blocking System (DIRBS).
The key question now is how the PTA will implement the facility through DIRBS and how citizens will be able to opt for instalment payments while registering their mobile phones.
The development is particularly significant for people who bring expensive mobile phones from abroad and have to complete tax and registration requirements before using the devices on local networks.
Why was DIRBS introduced?
Pakistan introduced DIRBS in December 2018 to identify unregistered mobile phones and block devices from local networks if they failed to meet applicable tax and registration requirements.
Later, in July 2019, the duty-free facility for mobile phones brought into Pakistan by overseas travellers was withdrawn. Since then, imported mobile phones have generally been required to have the applicable duties and taxes paid before being used on local networks.
The permission to pay PTA taxes in instalments could now provide consumers with a more flexible payment option instead of requiring them to pay the entire amount upfront. However, the exact facility and its procedure will become clear once the PTA introduces the system.
Potential impact on consumers
The decision is considered particularly important for people using expensive imported mobile phones. The ability to spread payments over instalments could reduce the financial difficulty of paying a large amount in one go.
However, consumers should keep in mind that the facility does not amount to a tax exemption. The full tax applicable to an imported mobile phone must still be paid before the end of the relevant financial year.
With the FBR having created the legal framework for instalment payments, the next major step is for the PTA to introduce the practical mechanism for paying mobile phone taxes in instalments through DIRBS.