Pakistan has reduced the advance income tax on imported mobile phones priced between $101 and $200. The tax has dropped from Rs930 to Rs100 per handset.
The reduction means buyers in this price range will face a much lower advance income tax. The mobile handset levy has also been cut from Rs600 to Rs200.
What other taxes will apply to imported phones?
Despite these cuts, sales tax rates remain unchanged. Buyers will still have to pay other taxes and duties that apply to imported mobile phones.
The final price will depend on the phone’s value and the taxes charged on it. Retailers will also decide how much of the tax reduction to pass on to customers.
The changes are part of the federal government’s tax reforms under the Finance Act 2026-27. The government has also reduced regulatory duties on imported phones in several price ranges.
Will imported mobile phones become cheaper?
The lower taxes could reduce the cost of some imported mobile phones. However, the price drop may vary from one phone to another.
In a recent written reply to the National Assembly, Finance Minister Muhammad Aurangzeb said the announced tax relief had been put into effect.
He also said the government was not considering further changes to taxes on imported mobile phones at present.
Consumers may benefit if retailers pass on the savings. However, the lower taxes do not guarantee an equal price cut on every imported handset.
Pakistan rejects IMF proposal to raise EV sales tax
Prime Minister Shehbaz Sharif has approved the new auto policy for 2026-31 for five years. The policy rejects the International Monetary Fund’s (IMF) proposal to raise sales tax on electric vehicles to 18 per cent.
According to the policy document, the government plans to increase vehicle exports to $6 billion. It has also proposed a 10 per cent federal excise duty on electric vehicles worth more than $75,000.
