KARACHI – Buying an imported smartphone in Pakistan has become increasingly expensive due to hefty taxes. There is relief for importers and users as Federal Board of Revenue (FBR) is considering reduction in taxes on imported mobile phones priced up to $200.
Federal Board of Revenue (FBR) is evaluating proposal to slash taxes on imported mobile phones priced at up to $200, a move that could lower the cost of entry-level and mid-range smartphones in Pakistan.
Speaking before National Assembly Standing Committee on Finance and Revenue, FBR Chairman Rashid Mahmood Langrial said the tax authority is reviewing the possibility of easing duties on devices within this price segment.
According to FBR data, imported smartphones currently face an average effective tax rate of 39.6%. Devices valued between $101 and $200 are taxed at 40%, while phones priced between $201 and $350 attract a 38% levy. Handsets in the $351–$500 bracket face a 40% tax, rising to 41% for devices costing more than $500.
FBR told lawmakers that imported mobile phones contribute around Rs. 37 billion in annual tax revenue, with Apple devices accounting for roughly Rs. 21 billion of the total. Depending on the handset’s value, the tax payable ranges from Rs. 1,500 to Rs. 141,500.
The proposed relief could have broad impact on the market, given that nearly 44% of imported phones fall within the $31–$100 price range. While no final decision has been announced, any reduction in taxes for phones priced up to $200 would likely benefit a significant portion of smartphone buyers in the country.
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