A Senate committee has called for lower taxes on older mobile phones, while a promised policy to let consumers buy phones in easy instalments remains stuck between government bodies, with each pointing to another as responsible. The two developments, reported on 27 and 28 October 2026, show how slowly mobile tax relief is moving despite repeated promises.
What the Senate Panel Discussed
At its meeting on 28 October 2026, the Senate Standing Committee on Cabinet Secretariat heard from the Ministry of IT and Telecom, PTA and FBR officials. IT Minister Shaza Fatima Khawaja told the committee that the Tax Policy Office, which has the authority to raise or lower taxes, will be asked to consider reducing taxes on older mobile phones, and its representatives should be summoned to brief the committee on relief for consumers.
Senator Abdul Qadir proposed making iPads and tablets tax-free, arguing they are used for work and earning, and also asked for lower taxes on older phones. Nothing was decided at the meeting: current duties and taxes remain in force, and any exemption would need approval from the Tax Policy Office and FBR, not just a committee recommendation.
The minister also noted that around 93 percent of mobile phones used in Pakistan are manufactured locally, and locally produced handsets are not subject to import taxes. Imported phones are a relatively small share of the market, she said, and FBR taxes are not blocking 5G adoption.
The PTA-FBR Data Gap
One practical problem came up in the discussion: FBR officials said a phone’s model and storage capacity determine the taxes that apply, but PTA’s system does not identify or record phone models. That gap makes it harder to assess and apply taxes correctly, and it is part of why the instalments question has become so tangled.
The Instalments Dispute
The Prime Minister has directed the government to formulate a policy allowing consumers to buy phones in easy instalments, according to the IT minister. No financing details, eligibility rules or start date have been given.
Meanwhile, a National Assembly committee hearing, reported on 27 October 2026, exposed the ownership dispute. Committee member Ali Qasim Gilani raised tax instalments and said FBR had passed responsibility to PTA, claiming PTA had a suitable system. PTA rejected that position, saying it neither imposes nor collects taxes, so it could not run an instalment scheme for money it never receives. The IT ministry secretary said he knew nothing about the matter and would discuss it with the PTA chairman. The committee chairman ordered a full briefing from the IT ministry and PTA at the next meeting.
The Duty Cuts Already Announced
The same hearing confirmed the duty cuts already made for the 2026-27 fiscal year under tariff rationalisation. All regulatory duty rates on fully built smartphones were cut by 20 percent, and additional customs duty fell from 6 percent to 4 percent:
- Phones valued over 500 dollars: regulatory duty cut from Rs. 22,000 to Rs. 17,600
- Phones valued 350 to 500 dollars: regulatory duty cut from Rs. 15,000 to Rs. 12,000
- Phones valued 200 to 350 dollars: regulatory duty cut from Rs. 11,000 to Rs. 8,800
- Phones valued 100 to 200 dollars: regulatory duty cut from Rs. 7,500 to Rs. 6,000
- Phones valued 30 to 100 dollars: regulatory duty cut from Rs. 3,000 to Rs. 2,400
- Phones valued under 30 dollars: regulatory duty cut from Rs. 300 to Rs. 240
For context, phone imports rose from 1.497 billion dollars to 1.888 billion dollars in fiscal year 2025-26, an increase of about 26 percent, with fully built smartphone imports more than doubling to 357.7 million dollars.
What It Means for Buyers
For now, nothing changes at the shop counter. The call for lower taxes on older phones is a proposal, not a decision. The instalments policy exists only as a direction, with no owner and no timeline. The duty cuts above are already part of the current fiscal year’s structure. Buyers waiting for cheaper older phones or a tax-instalment option will have to wait for the Tax Policy Office briefing and the next committee meeting.
Frequently Asked Questions
Is the tax on old phones being reduced?
Not yet. A Senate panel has asked the Tax Policy Office to consider lower taxes on older phones, but no decision has been made and current taxes remain in force.
Can I buy a phone in instalments and pay its tax in parts?
Not currently. The Prime Minister has directed that an instalments policy be formulated, but FBR, PTA and the IT ministry have not agreed on who should run it.
Why can’t PTA run the tax instalment scheme?
PTA says it neither imposes nor collects taxes, so it cannot run an instalment scheme for money it never receives.
What duty cuts have already been made?
For 2026-27, regulatory duty on fully built smartphones was cut 20 percent across all price bands, and additional customs duty fell from 6 percent to 4 percent.
Are iPads and tablets becoming tax-free?
A senator proposed it, but it is only a proposal. Any exemption needs Tax Policy Office and FBR approval.
Why does the PTA system matter for phone taxes?
FBR taxes depend on a phone’s model and storage, but PTA’s system does not record phone models, which creates an assessment challenge.
Conclusion
The Senate panel’s push for lower taxes on older phones and the stalled instalments policy both point to the same bottleneck: decisions sit with the Tax Policy Office and FBR, while PTA and the IT ministry can only recommend. Until the summoned officials brief the committee, buyers should treat both ideas as proposals, not promises.
