Anyone hoping for another round of tax cuts on imported mobile phones will have to wait. The government has officially confirmed that the relief announced in the Finance Act 2026 is final, and no further reductions are planned this fiscal year.
The news came in a written reply from Finance Minister Muhammad Aurangzeb to the National Assembly, reported on October 14, 2026. Here is a clear breakdown of what was said, what actually changed in the law, and what it means for phone prices.
What the Finance Minister Said
In his written reply, the Finance Minister stated that the mobile phone tax regime was reviewed during the budget exercise, after consultation with the Standing Committee on Finance and Revenue and the IT industry. The relief agreed during that process was put into law through the Finance Act 2026 — and that is all there will be for this fiscal year.
The reply makes it clear: further cuts would reduce government revenue, so no additional tax relief on imported mobile phones is under consideration right now. Anyone waiting for a second cut before buying or registering a phone has been told not to wait.
The Tax Cuts That Did Happen
Two cuts did take effect under the Finance Act 2026, and both apply to one bracket only — phones valued above $100 and up to $200:
- Income tax on import: fell from Rs. 930 to Rs. 100 for phones in the $100 to $200 bracket.
- Mobile Handset Levy: one line of the levy fell from Rs. 600 to Rs. 200 for the same bracket.
Together, these two cuts take Rs. 1,430 off the bill for a phone in this range. Phones in every other price bracket pay exactly what they paid last year.
Who Benefits and Who Does Not
The cuts benefit buyers of budget imported phones valued between $100 and $200 — the range where most entry-level and mid-range devices sit. If your phone falls in this bracket, the DIRBS payment slip should show the lower figures; if it still shows the old ones, raise it with PTA before paying.
Phones valued above $500 get nothing new. That includes iPhones and Samsung flagship models like the Galaxy S series. The 25% sales tax on phones above $500 stays unchanged, and all other charges on these devices are untouched.
The wider picture remains the same: an imported phone carries roughly 54% total tax on its value, while a locally assembled phone carries about 25% — figures given to the National Assembly’s finance committee earlier this year.
What It Means for Phone Prices in Pakistan
For budget phone buyers, the cuts are real and already in force: a cheaper registration cost at PTA can translate into slightly lower retail prices for imported phones in the $100–$200 range.
For flagship buyers, the message is simple — register now and do not hold out for a tax cut that is not coming before the next budget. The window for travellers is 60 days from arrival to register a phone on a passport at the lower passport rate, so arriving passengers should complete registration on time.
Before buying any imported phone locally, always check the IMEI status by sending it to 8484, and make sure the seller shows you the registration status before you pay.
FAQs
Will PTA tax on imported phones be reduced again in 2026?
No. The Finance Minister’s written reply confirms the Finance Act 2026 relief is final for this fiscal year, with no further cuts under consideration.
What exactly did the Finance Act 2026 change?
It cut income tax on phones valued $100–$200 from Rs. 930 to Rs. 100, and cut one line of the Mobile Handset Levy from Rs. 600 to Rs. 200. Both changes are in the Gazette text of the Act.
Do the cuts apply to iPhones and Samsung flagships?
No. Flagships are valued above $500, where the 25% sales tax is unchanged and no cuts apply.
Can I pay PTA tax in instalments?
Not yet. The Finance Act 2026 allows FBR to offer instalment plans, but the DIRBS portal still collects the full amount at once.
How much total tax is on an imported phone?
About 54% of the phone’s value for imported phones versus about 25% for locally assembled phones, as reported to the finance committee in April 2026. The exact amount depends on the price bracket.
Conclusion
The Finance Minister has closed the door on further tax relief for imported mobile phones this fiscal year. The Finance Act 2026 gave budget phones in the $100–$200 bracket a genuine break — Rs. 1,430 off in two tax lines — but flagship devices saw no change. With roughly 54% total tax still weighing on imports against 25% on locally assembled phones, the government’s direction is clear: buy and register under the rules as they stand, because no further cut is coming before the next budget.