Pakistan Cuts Mobile Duty Slabs by Up to 20% to Relief Smartphone Buyers

 

The Federal Board of Revenue in Pakistan has implemented revised Regulatory Duty rates as part of its tariff reform plan for fiscal year 2026–27 under the National Tariff Policy 2025–30. Effective July 1, 2026, the framework applies a 20% reduction to items previously subject to regulatory duty rates of 20% or lower. This broader initiative is designed to simplify Pakistan's import tariff structure while progressively easing trade duties across several sectors.

The policy update provides targeted relief for mobile phone imports, particularly within the mid-range smartphone segment. Under the revised duty slabs, handsets priced between $101 and $200 now face a reduced regulatory duty of Rs. 6,000 per unit, down from the previous Rs. 7,500. Income tax rates for this specific price band have also been trimmed, though the general 18% sales tax remains intact.

These tax revisions coincide with a marked increase in mobile phone demand and import activity nationwide. Pakistan’s mobile imports climbed to $1.888 billion during the 2025–26 fiscal year, reflecting a notable rise from the $1.497 billion imported during the previous year.

While a Senate parliamentary committee recently urged further tax relief and a comprehensive review of the current customs valuation framework, industry analysts emphasize that retail price adjustments will vary. The actual impact on consumer prices will depend heavily on individual device valuations, foreign exchange fluctuations, and local distributor pricing policies.