Overseas Pakistanis to get relief on mobile phones brought from abroad

Overseas Pakistanis to get relief on mobile phones brought from abroad

Web desk: The Federal Board of Revenue (FBR) is weighing a proposal to reduce taxes on used mobile phones brought into Pakistan by overseas Pakistanis, FBR Chairman Rashid Mahmood Langrial told lawmakers on Tuesday.

Mobile phones brought from abroad

Speaking at a meeting of the National Assembly’s Standing Committee on Finance, Langrial said the government is reviewing taxation policies for both imported and locally assembled phones.

He noted that authorities are also considering cuts in duties on low-value used handsets frequently carried into the country by expatriates.

A detailed report outlining possible tax reductions is expected to be completed by March 2026.

This can be seen as a major development for overseas Pakistanis, as the Federal Board of Revenue (FBR) is now considering a substantial reduction in taxes on mobile phones brought from abroad.

During the session, Pakistan Telecommunication Authority (PTA) Chairman Major General (R) Hafeez ur Rehman briefed the committee on the current market landscape.

He revealed that just 6 per cent of mobile phones in Pakistan are imported, while nearly 94 per cent are produced domestically.

Locally manufactured devices, he added, are subject to a comparatively low tax rate of 5–6 per cent.

Customs Member Shakeel Shah informed the panel that mobile phone purchases generated Rs82 billion in tax revenue this year, including Rs18 billion collected from imported devices.

The discussion also highlighted concerns over steep duties on high-end smartphones.

MNA Ali Qasim Gillani recommended that overseas Pakistanis be permitted to bring one mobile phone per year without paying taxes, arguing that current rates are prohibitively high.

“Taxes on an iPhone 12 now exceed the price of the phone itself,” Gillani remarked, emphasising that expatriates send billions of dollars in remittances and should be offered relief.

The committee took up the suggestions and agreed to further examine potential tax incentives for overseas Pakistanis.

What can it mean for overseas Pakistanis?

If the government approves the proposed tax cuts, overseas Pakistanis will be able to bring used mobile phones into the country at much lower costs.

This means they may no longer have to pay the high duties that currently make many phones, especially iPhones, extremely expensive at the airport.

It would make it easier and more affordable for them to bring their personal devices home.