title:FBR PTA Taxes Drastically Reduced on Mobile Phones in Pakistan
ISLAMABAD: In a significant policy shift to make telecommunications devicesmore accessible, the Federal Board of Revenue has drastically lowered theeffective taxes associated with PTA registration for imported used mobilephones. The Directorate General of Customs Valuation Karachi issuedValuation Ruling No. 2035 of 2026, revising the benchmark customs valuesfor 62 types of used branded smartphones. This adjustment reflectsdepreciated international market prices rather than original launch values,directly reducing the base on which multiple taxes are levied. The rulingtargets commercial imports of devices without original packaging oraccessories from prominent brands including Apple, Samsung, Google Pixel,and OnePlus. Industry observers note that this step addresses longstandingcomplaints about inflated taxation driving up costs and encouraging greymarket practices.
The recent adjustment by Pakistan’s Federal Board of Revenue (FBR), throughthe Directorate General of Customs Valuation in Karachi, has led to asignificant reduction in effective PTA taxes on imported used mobilephones. This change, outlined in Valuation Ruling No. 2035 of 2026 issuedon January 19, 2026, revises customs values for 62 models from brands likeApple, Samsung, Google Pixel, and OnePlus to align with currentinternational market prices for used devices without packaging oraccessories. The move aims to curb under-invoicing, enhancetransparency inrevenue collection, and provide relief to consumers and importers amid hightaxation burdens that have historically inflated smartphone costs inPakistan. As a result, the total PTA approval charges, which includecustoms duties, sales tax, income tax, and PTA registration fees calculatedon the assessed value, have dropped substantially for many popular usedmodels.
The previous taxation regime often assessed duties on near-original priceseven for older or used units, resulting in disproportionately high chargesthat deterred legal imports and PTA approvals. For instance, flagshipmodels from previous generations faced PTA taxes that could exceed Rs.100,000 in some cases, making them unaffordable for many consumers. The newruling depreciates these values substantially to match real-world usedmarket rates, leading to reductions estimated between 20 to 40 percentdepending on the model and variant. This change is expected to boost formalimports, improve government revenue through better compliance, and lowerretail prices in the secondary market where used phones dominate sales.
Data from recent reports indicate that the revised customs values forselect Apple iPhone models have seen notable declines. For the iPhone 15series used variants, the base assessment has dropped, translating to PTAtaxes as low as Rs. 31,000 to Rs. 34,000 for certain configurations onpassport or CNIC, compared to higher previous figures. Similarly, oldermodels like the iPhone 13 and iPhone 14 Plus benefit from sharperreductions due to greater depreciation applied. Samsung Galaxy S23 seriesand other models from Google Pixel and OnePlus also feature loweredvaluations, with examples showing customs bases as low as $140 for someunits, significantly cutting overall fiscal liabilities.
Experts highlight that PTA taxes comprise several components, including afixed registration fee plus ad valorem duties such as 17 percent customsduty, 18-25 percent sales tax, and additional income withholding taxes, allcomputed on the customs-assessed value. By lowering this foundationalvalue, the FBR effectively slashes the cumulative burden without alteringstatutory tax rates. This indirect reduction is particularly impactful forused phones, which form a large segment of Pakistan’s smartphone market dueto economic constraints and preference for premium brands at accessibleprices.
The decision follows ongoing discussions within regulatory circles,including PTA’s advocacy for easing high import taxes to expand digitalaccess and counter smuggling of non-compliant devices. While the rulingapplies specifically to used imports, it sets a precedent for potentialbroader reforms. Market analysts anticipate that smartphone affordabilitywill improve in the coming months, potentially increasing PTA-registereddevices and reducing the prevalence of illegal, non-taxed phones that evaderegulatory oversight and pose security risks.
Read Top Stories
Consumers importing used phones through official channels will now facelower upfront costs at customs and during PTA DIRBS (Device Identification,Registration and Blocking System) approval. This could encourage moretravellers and overseas Pakistanis to bring devices legally rather thanrisking blocks on non-registered phones. Furthermore, the alignment withglobal used market prices helps standardize valuation, reducing disputesand enhancing predictability for importers.
The broader implications extend to Pakistan’s digital economy, wheresmartphone penetration remains key to financial inclusion, e-commerce, andeducation. Lower entry barriers for quality used devices could accelerateadoption of 4G and emerging 5G services once spectrum issues are resolved.Government officials emphasize that the measure balances revenue protectionwith public relief, aiming to formalize the market while supporting localassembly initiatives through separate policies.
Overall, this taxation adjustment represents a pragmatic response to marketrealities and consumer feedback, promising tangible benefits inaffordability without compromising fiscal discipline. As implementationrolls out, stakeholders will monitor its impact on import volumes, pricelevels, and compliance rates in the vibrant mobile phone sector.
ogimageimage-name