The government has ruled out any further tax relief on imported mobile phones, so the mobile phone tax in Pakistan will stay at the levels set in the 2026-27 budget for now. Shoppers hoping for cheaper smartphones will have to wait. The position was given in a written reply to the National Assembly on October 14, 2026.
What the Finance Minister told the National Assembly
Finance Minister Senator Muhammad Aurangzeb said the government had already put every approved tax measure into effect under the Finance Act 2026. Officials, he said, are not considering any additional changes to how imported mobile phones are taxed. The reply did not set a separate timeline for reviewing the issue again.
Relief already given in the budget
The government says it introduced these measures to support digital inclusion and to respond to public demand for a fairer tax system. Income tax on phones valued between $100 and $200 fell from Rs930 to Rs100. The mobile handset levy was cut from Rs600 to Rs200, and the overall rates for the Mobile Handset Levy and Regulatory Duty were revised. Aurangzeb said these decisions followed long consultations, including a review by the National Assembly Standing Committee on Finance and Revenue and talks with the information technology industry.
Why no further cuts are planned
Duties and taxes still add significantly to the cost of legally imported handsets. Consumers and tech advocates have argued that lower taxes would make phones and digital services more affordable. The government, however, says further changes to the mobile phone tax in Pakistan would have serious effects on revenue, and it considers the existing measures enough to meet its budget commitments.
The government has also extended the 0.25 percent income tax rate on IT service exports until 2029, which it says answers a major demand from the IT industry. The Finance Act 2025-26 had already capped income and sales taxes on digitally acquired services and supplies at a maximum of two percent. Officials say all budget measures have now taken effect, leaving no room for further mobile phone tax adjustments at present.
Aasan alfaaz mein
Government ne kaha hai ke imported mobile phones par mazeed tax relief nahi diya jayega. Finance Minister Muhammad Aurangzeb ne National Assembly mein likhit jawab mein yeh baat kahi. Budget 2026-27 mein jo relief diya gaya tha, woh abhi final hai. Agar aap naya phone lene ka soch rahe hain, to abhi tax mein mazeed kami ki ummeed na rakhein.
