Imported Premium Smartphones to Get Cheaper as Duty Reduction Takes Effect July 1
The federal government has announced a reduction in regulatory duty on imported mobile phones as part of the 2026-27 budget, a move expected to lower the cost of premium smartphones from July 1, 2026.
Officials told the National Assembly Standing Committee on Finance that the regulatory duty on high-end imported phones has been reduced by 20 percent. The change is expected to provide consumers with savings of up to Rs. 14,000 on certain imported devices.
The reduction is part of the government’s broader tariff rationalization strategy aimed at adjusting import duties across various sectors.
Despite the relief, tax authorities have recommended maintaining the current taxation framework for imported mobile phones. Officials believe the existing structure supports government revenue while keeping the tax burden aligned with the value of devices.
According to official data, locally assembled phones continue to dominate Pakistan’s mobile market, accounting for approximately 95 percent of total usage, while imported handsets represent a much smaller share.
Authorities have suggested that any future concessions should focus on entry-level imported smartphones priced between $31 and $200, as such measures would primarily benefit budget-conscious and first-time smartphone buyers.
Recent figures show strong growth in mobile phone imports during the past year. Imported handset volumes increased by 61 percent, rising from 640,000 units to more than one million units. The total value of imports also recorded a significant increase, reflecting growing demand for higher-priced smartphones.
Revenue collected from taxes and duties on imported phones reached Rs. 36.9 billion, marking a substantial rise compared to the previous year. Officials noted that demand growth was largely driven by premium smartphone models, while lower-priced feature phones continued to lose market share as consumers increasingly shifted toward smartphones.
Government representatives stated that high-end devices generate a major portion of import tax revenue despite accounting for a relatively small percentage of total imported units. As a result, policymakers remain cautious about introducing additional duty reductions on premium smartphones.
The latest policy changes are expected to provide limited relief for buyers of imported flagship devices while maintaining support for local mobile phone assembly and manufacturing.
