Smartphones in Pakistan could become cheaper if a proposed tax relief package is approved in the FY2026-27 budget.
The Ministry of Information Technology and Telecommunication (MoITT) has suggested several tax reductions for the telecom and mobile sector, according to reports.
These reductions include an exemption from withholding tax and a lower import duty on telecom equipment. In addition to this, lower taxes have been proposed on parts that are used in the assembly of mobile phones.
According to the ministry, these measures would make smartphones more affordable. These can also encourage investment in the sector, create employment opportunities, and improve digital connectivity across the country.
Another proposal is under consideration as well. It is to reduce the PTA tax on premium smartphones from 25 per cent to 18 per cent. However, reports suggest that the proposal is facing disagreement during final budget discussions.
