A Senate committee heard on 28 October 2026 that Pakistan's phone tax system has a basic data gap: the Federal Board of Revenue (FBR) taxes handsets by model and storage size, but the system run by the Pakistan Telecommunication Authority (PTA) does not record the model. IT and Telecom Minister Shaza Fatima Khawaja told the Senate Standing Committee on Cabinet Secretariat that this mismatch is one reason phone taxation is hard to administer.
What the Senate committee was told on 28 October
According to Tech Prolonged's report of the hearing, the minister told senators that FBR sets taxes by a handset's model and storage, while PTA's system does not capture the model. She also pointed out who actually controls the rates: the power to change tax rates rests with the Tax Policy Office, not her ministry. The committee proposed calling Tax Policy Office officials to brief it on how rates are set and what they mean for buyers.
The minister also gave the committee a sense of scale: about 93% of phones used in Pakistan are made locally, she said. The prime minister has also directed a policy for buying phones in instalments, the minister told the committee — significant, but not yet a working scheme for buyers.
Phone duties were already cut for 2026-27 — but instalments still do not work
The hearing came against duty cuts already announced in the FY2026-27 budget, reported by Economic Outlook from a National Assembly committee meeting.
- Regulatory duty on fully built smartphones has been cut by 20%: on phones costing more than $500, it falls from Rs. 22,000 to Rs. 17,600.
- Phones priced at $350–500 now pay Rs. 12,000 instead of Rs. 15,000, and phones at $200–350 pay Rs. 8,800 instead of Rs. 11,000.
- Cheaper models get the same percentage cut: $100–200 phones now pay Rs. 6,000 instead of Rs. 7,500, and $30–100 phones pay Rs. 2,400 instead of Rs. 3,000.
- Additional customs duty on all listed phone categories has fallen from 6% to 4%, and duty on completely and semi-knocked-down kits for local assembly has dropped from 5% to 4% for RD and from 6% to 4% for ACD.
If you want to see what a 20% cut means on a real duty figure, a free percentage calculator will work it out in seconds.
But there is a catch that the committee hearing exposed. The Finance Act 2026 allows FBR to prescribe payment of phone tax in instalments, with all instalments paid before the end of the financial year of import — yet the DIRBS portal still takes the full amount in one go, and the FBR, PTA and IT ministry each indicated in the earlier committee meeting that another body was responsible for the instalment plan. Until one agency owns the scheme, buyers should not plan a purchase around paying PTA tax in parts.
No further tax cuts are coming this fiscal year
Buyers hoping for another round of relief should not wait for it. According to the finance minister's written reply to the National Assembly, reported on 14 October 2026, the relief in the Finance Act 2026 is final for this fiscal year. That Act cut the income tax on a phone valued above $100 and up to $200 from Rs. 930 to Rs. 100, and cut one component of the Mobile Handset Levy from Rs. 600 to Rs. 200 — but those cuts apply to the $100–200 bracket only, and the 25% sales tax on phones above $500 is unchanged.
Frequently asked questions
Why does PTA not record a phone's model?
That is exactly what the Senate committee asked on 28 October 2026. The IT minister told the committee that PTA's system does not capture the model, even though FBR taxes phones by model and storage — and the committee wants Tax Policy Office officials to explain how rates are set.
Can I pay PTA tax in instalments now?
Not yet. The Finance Act 2026 allows instalments in principle, but the DIRBS portal still takes the full amount, and no agency has yet taken ownership of a working instalment scheme.
Does this affect locally assembled phones?
Less directly. About 93% of phones used in Pakistan are made locally, and the tax load on local assembly is far lower than on imports — around 25% of value against about 54% for imports, according to the finance committee briefing.
Conclusion
The 28 October hearing changed no tax rate, but it exposed why phone taxation feels messy: the agency registering your phone does not record the model the taxing agency uses. Until that gap is fixed, verify your DIRBS record and budget for the full tax.
For accessories and everyday mobile gear, you can also browse our JustMobilePk store before you buy.
