Good news might be on the way for phone buyers in Pakistan. FBR Chairman Rashid Mahmood Langrial told the National Assembly Standing Committee on Finance and Revenue that the board may reduce the PTA tax on phones priced up to $200.
Langrial confirmed that this reduction is currently under consideration. He did not commit to a final figure, but the statement alone signals a possible shift in policy direction.
Imported mobile phones currently generate around Rs. 37 billion in annual tax revenue. Interestingly, Apple devices alone contribute nearly Rs. 21 billion of that total. This shows just how much weight premium brands carry in the overall tax structure.
According to the FBR briefing, the current tax slabs vary significantly by price range. Phones worth $101 to $200 face a 40 percent tax. Meanwhile, those priced between $201 and $350 are taxed slightly lower at 38 percent. Devices in the $351 to $500 range return to a 40 percent rate. However, phones costing more than $500 attract the highest rate at 41 percent.
Across all these categories, the effective average tax rate stands at 39.6 percent. That’s a substantial chunk added to any imported handset’s final cost.
In real terms, the tax payable ranges from Rs. 1,500 to as much as Rs. 141,500 per device, depending on the phone’s value. Therefore, even a modest price difference between handsets can lead to a major gap in taxes owed.
FBR officials also shared an important detail about buying patterns. Nearly 44 percent of imported phones fall within the $31-$100 category. This suggests most buyers are opting for budget and mid-range devices rather than flagship models.
Still, any change to the PTA tax on phones in this bracket could influence buying behavior going forward. Additionally, it may affect how many people choose to import phones legally instead of through informal channels.
For now, the committee has only heard that a reduction is possible, not finalized. So buyers eyeing a $200 device may want to watch for further announcements before making a purchase decision.
