Proposal to allow overseas Pakistanis to bring one tax-free mobile phone

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial on Tuesday said the government is considering reducing taxes on used mobile phones brought into Pakistan by overseas Pakistanis.

He made the remarks during a meeting of the National Assembly Standing Committee on Finance, where taxation of imported and locally manufactured mobile phones was discussed.

According to the FBR chairman, the government is also exploring the possibility of lowering duties on low-value used mobile phones, which are commonly brought in by expatriates. A report proposing reductions in mobile phone taxes is expected to be finalized by March 2026.

During the briefing, Chairman of the Pakistan Telecommunication Authority (PTA), Major General (R) Hafeez ur Rehman, shared key statistics about Pakistan’s mobile phone market. He said that only 6% of mobile phones in Pakistan are imported, while nearly 94% are locally manufactured.

Locally produced phones carry a tax rate of only 5–6%, he added.

Customs Member Shakeel Shah informed the committee that the government collected Rs82 billion in taxes from mobile phone purchases this year, including Rs18 billion from imported phones.

During the meeting, MNA Ali Qasim Gillani proposed allowing overseas Pakistanis to bring one mobile phone per year tax-free, noting that current duties—particularly on high-end devices—are excessively high.

“Taxes on an iPhone 12 are now higher than the price of the device itself,” Gillani said, adding that expatriates contribute billions of dollars in remittances and deserve relief in return.

The committee discussed the proposal and agreed to further review tax incentives for overseas Pakistanis.