Govt slashes regulatory duty on imported Phones by 20%

ISLAMABAD: The federal government has implemented a decision to reduce the regulatory duty imposed on imported mobile phones by 20 percent, which has come into effect today, July 1, 2026.

After this decision, the prices of imported smartphones in Pakistan are expected to come down significantly, which will provide relief to buyers of mobile phones of all categories, including expensive, mid-range and low-end.

According to the Federal Board of Revenue (FBR), the government had approved a 20 percent reduction in the regulatory duty imposed on imported mobile phones in the budget for the financial year 2026-27, which has been implemented regularly from July 1.

The aim of this measure is to provide relief to consumers, encourage legal imports and make the tax and duty system more balanced. Since the prices of imported mobile phones in Pakistan include various taxes including regulatory duty, customs duty, sales tax, income tax and PTA registration fee, legally imported phones are sold relatively expensive. The reduction in regulatory duty will reduce import costs, which is also expected to have a phased impact on market prices.

According to initial estimates, the possible reduction in mobile phones of different prices may be as follows:

The actual price reduction may vary depending on different brands, models, import cost, PTA tax and other applicable duties.
According to officials, the government has also made some significant changes in the category of smartphones priced between US$ 200 and 300. Since this range is the most sold in the Pakistani market, middle-class consumers are expected to benefit the most from this decision.

According to market sources, if importers import fresh consignments as per the new duty and its benefit is fully passed on to the consumers, then in the next few days, mobile markets across the country may see a significant reduction in prices, which will provide considerable relief to those looking to buy new smartphones.