ISLAMABAD (HRNW) – As preparations enter the final stages for the presentation of the federal budget for the fiscal year 2026-27 on June 5, following the successful conclusion of negotiations between Pakistan and the IMF, mixed signals have emerged for smartphone consumers across the country. On one hand, the federal government appears set to retain the existing high PTA tax structure on premium imported phones, a move likely to disappoint smartphone enthusiasts and dampen hopes for any immediate across-the-board relief.
Conversely, a major proposal to slash mobile phone taxes from 25% down to 18% is also expected to be considered in the upcoming budget. If implemented, this reduction is highly likely to decrease the prices of high-end and flagship smartphones, particularly those valued above $500, making premium devices like Apple iPhones and Samsung flagship models significantly cheaper.
However, local smartphone manufacturing and assembly companies are strongly opposing any reduction in import taxes. Local manufacturers argue that lowering import duties will make imported phones cheaper, which would directly hurt the sales and market share of locally manufactured mobile devices.
Under the current PTA registration system, mobile phones brought from abroad or entered through unofficial channels only functionalize for a limited period unless hefty regulatory duties are paid. If the government decides against reducing these import taxes in the final budget, the prices of flagship and premium smartphones will remain completely out of reach for average Pakistani consumers.
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