FBR Working on Proposal to Reduce Duties on Mobile Phone Imports

The Federal Board of Revenue (FBR) is working on a new plan to reduce duties and taxes imposed on the import of mobile phones in Pakistan. The move comes amid growing concern from lawmakers, industry stakeholders, and consumers who believe that high taxes have made smartphones unaffordable for a large segment of the population. According to sources, the FBR is preparing a detailed proposal that will be presented to the National Assembly Standing Committee on Finance for review.

As part of this process, the FBR is also expected to consult the Pakistan Telecommunication Authority (PTA) to align tax policies with market realities. Officials believe that a balanced approach is needed—one that protects government revenue while ensuring that mobile phones remain accessible to ordinary citizens. Smartphones are now considered an essential tool for communication, education, digital payments, and access to online services, rather than a luxury item.

FBR Working on Proposal to Reduce Duties on Mobile Phone Imports

During recent discussions, Cellular Mobile Operators (CMOs) urged the FBR to withdraw regulatory duties on telecom power equipment that is not manufactured locally. They also proposed a broader rationalisation of duties on telecom equipment. Another key demand was to exclude the telecom services sector from the retail price list system, as telecom companies import equipment for network operations, not for direct sale to consumers.

FBR data shows that the government collected Rs82 billion in taxes from mobile phone imports during the fiscal year 2024–25. Out of this amount, around Rs18 billion came from high-end smartphones, which accounted for nearly one-quarter of the total collection. At present, mobile phones imported in CKD and SKD kits for local assembly are subject to only a five percent duty, which has helped boost domestic manufacturing. Several local assembly plants are now producing smartphones priced as low as Rs15,000, making them more affordable for budget-conscious consumers.

See Also: Government Plans to Cut Smartphone Taxes to Support 5G Rollout

However, lawmakers argue that excessive taxes on imported smartphones, especially mid-range models, have placed a heavy burden on users. Members of the National Assembly Standing Committee on Finance have stressed that smartphones are a basic necessity in today’s digital economy. They have also questioned the long-standing justification of maintaining high duties due to Pakistan’s commitments under IMF programmes.

The committee has directed the FBR to prepare a comprehensive report on reducing these heavy taxes, particularly under the personal baggage and registration system. Committee Chairman Syed Naveed Qamar advised the FBR and the Tax Policy Office to revisit current tax rates and consider relief measures for consumers.

The PTA has clarified that it does not impose any direct taxes on mobile phones. PTA also clarified that FBR collect all duties. According to the PTA Chairman, 94 percent of smartphones used in Pakistan are locally assembled, while only six percent, mainly high-end devices, are imported. Except for Apple, most major smartphone brands are now manufactured locally.