Mobile phone tax slashed for $101–$200 imports

The federal government has sharply reduced the mobile phone tax on imported handsets priced between $101 and $200, cutting the advance income tax from Rs. 930 to Rs. 100 and lowering the mobile handset levy from Rs. 600 to Rs. 200, the Finance Minister told the Senate in a written reply.

Mobile phone tax: how the cuts work

The reductions apply only to two specific levies for imported phones in the $101–$200 band. Taken together, the advance income tax and the handset levy have fallen from Rs. 1,530 to Rs. 300 — a per-unit reduction of Rs. 1,230. The figures were disclosed in the Finance Minister’s written reply and were reiterated during Senate proceedings.

The reply also noted that this disclosure should not be read as launching a separate or broader round of tax cuts. Officials did not provide an estimate of the revenue impact or confirm whether the lower charges will be passed on to consumers in retail prices.

Other taxes and limits remain unchanged

Crucially, the cuts do not affect general sales tax rates. Imported phones valued up to $500 continue to face 18% sales tax, while devices above $500 are subject to a 25% rate. Locally supplied phones remain at the 18% GST band.

The Senate reply referenced a Rs. 250 sales tax on mobile SIM activation included in older statutory schedules, but that provision ceased to apply from July 1, 2020, and should not be treated as a current charge without further legal clarification.

What This Means for Pakistan

For Pakistani consumers the immediate, concrete change is a reduction of Rs. 1,230 on imported handsets in the specified price band — but the final effect on pocketbooks is uncertain. Retail prices will still reflect sales tax (18% or 25%), import costs, exchange-rate movements and retailer margins, any of which can offset the levy cuts.

For the telecom market and device sellers, margins on lower-priced imports could widen if retailers keep consumer prices steady. The development will be watched by industry stakeholders already navigating a wider digital and telecom policy landscape, including corporate results and investment trends in the sector; see recent reporting on PTCL Group results and Pakistan’s push on digital transformation at international forums such as the Global AI Summit 2026.

Background

The figures emerged in a written reply to the Senate and were published in media updates on Oct. 23, 2026. The Federal Board of Revenue (FBR) retains authority over mobile phone tax rates and calculations; the Pakistan Telecommunication Authority does not set these charges. Historically, phone-related levies and collection mechanisms have been a recurring focus of parliamentary queries and industry debate.

How much relief shoppers actually see will depend on whether importers and retailers reduce shelf prices to reflect the lower levies, and on movements in currency and other import-related costs.

Sources: News Source