Here Are The New Taxes on Mobile Phones in Pakistan September 25, 2023

Pakistan’s tax budget was recently updated, resulting in higher income taxes, sales taxes, regulatory charges, and other fees. Imported mobile phone prices skyrocketed as a result of this.

Unfortunately, the price increase is significant, as the new sales tax on smartphones costing more than $200 is a whopping 17%. The Pakistan Telecommunication Authority (PTA) has officially announced the various taxes that would be charged on cellphones at various prices. The list contains smartphones across all price ranges, from entry-level phones to premium handsets such as the Galaxy S21/iPhone 13, and so on.

The fixed tax on cellphones costing between $201 and $350 has risen from Rs. 1,750 to Rs. 14,661.Handsets priced between $351 and $500 will now be taxed at Rs. 23,420, while phones costing more than $500 will be taxed at Rs. 37,000 and up. Here’s the complete list:

$1 to $30 = Rs. 430
$31 to $100 = Rs. 3,200
$101 to $200 = Rs. 9,580
$201 to $350 = Rs. 12,200 + 17% Sales Tax
$351 to $500 = Rs. 17,800 + 17% Sales Tax
$501 and above = Rs. 36,870 + 17% Sales Tax

This is true for smartphones that have been imported using your Passport ID. Import duties on CNICs are even more severe. Here’s the rundown:

$1 to $30 = Rs. 550
$31 to $100 = Rs. 4,323
$101 to $200 = Rs. 11,561
$201 to $350 = Rs. 14,661 + 17% Sales Tax
$351 to $500 = Rs. 23,420 + 17% Sales Tax
$501 and above = Rs. 37,007 + 17% Sales Tax

The Federal Bureau of Revenue (FBR) has also released a screenshot of the new taxes, contrasting the previous and new tax values.

If you’re curious about why taxes have risen so dramatically, Prime Minister Imran Khan recently discussed it in an interview. He claims that he wants to boost local smartphone production in Pakistan as well as reduce billions of dollars in imports, which he claims will depreciate the Pakistani rupee. The complete interview may be found here.