According to reports today, the government is reviewing a proposal to lower the mobile phone tax rate from 25 per cent to 18 per cent. If approved, the move could significantly reduce the prices of expensive smartphones in Pakistan.
Mobile phone users are closely watching the upcoming federal budget for 2026-27. The government is considering a reduction in taxes on mobile phones.
At present, imported smartphones are subject to various taxes and registration charges. This makes many high end devices costly for people.
The proposed tax reduction is expected to benefit buyers of premium smartphones. These are particularly high end models from Apple and Samsung Electronics.
Lower taxes could reduce the overall cost of these devices and lead to lower market prices.
However, local mobile phone manufacturers are not in favour of reducing import duties, reports say.
They argue that cheaper imported phones could hurt the local industry and affect the sales of phones assembled or produced in Pakistan, the reports add further.
The government is expected to balance the interests of local manufacturers while also providing relief to consumers.
In addition to this, reports say that the current tax structure on premium imported smartphones may largely remain in place.
However, if the proposed reduction is approved, it could provide significant relief to buyers of expensive mobile phones.
Industry stakeholders and consumers are now waiting for the final budget announcement to see whether the proposed tax cuts become part of the government’s fiscal plan for the next year.
Taxes on solar panels, hybrid cars may increase
Pakistan’s upcoming federal budget may bring higher taxes on solar panels and hybrid vehicles, reports say today. This could make clean energy systems and fuel efficient cars more expensive for consumers.
According to a budget preview by Topline Securities, the government is considering increasing the General Sales Tax (GST) on solar panels. The rate may rise from 10 per cent to 18 per cent in the 2026 to 2027 budget.
