Imported mobile phones are set to get cheaper from July 1 as Pakistan’s National Assembly has approved key amendments to the Finance Bill for the upcoming fiscal year, including a 20% reduction in Regulatory Duty (RD) on imported mobile phones.
The move comes after extensive parliamentary debate over high taxation in the telecommunications sector, which was largely left untouched in the initial federal budget proposal.
MP Kasim Gilani said the changes represent a partial relief for consumers, even though they fall short of the broader tax cuts recommended by a parliamentary committee.
The amendments come amid a complex tax structure that previously imposed a combined burden of up to 63% on imported smartphones, including General Sales Tax, Regulatory Duty, Mobile Device Levy, and Withholding Tax.
Under the revised Finance Bill, the Federal Board of Revenue (FBR) has agreed to reduce Regulatory Duty on all imported mobile phones by 20%, offering partial relief across all price segments. The change is expected to ease costs for consumers while maintaining revenue stability.
Moreover, the FBR approved targeted relief for mid-range smartphones priced between $200 and $300, a segment that dominates Pakistan’s mobile market.
However, premium devices above $500 will continue to face the existing 25% luxury GST, with only the reduced RD applying as relief.
Moreover, lawmakers also proposed reforms to the Pakistan Telecommunication Authority’s (PTA) Device Identification, Registration and Blocking System (DIRBS), suggesting installment-based payment options for registration fees to encourage compliance and expand the tax net.
