The Federal Board of Revenue (FBR) is considering a significant policy shift. FBR Chairman Rashid Mahmood Langrial stated the government is exploring tax reductions on used mobile phones brought into Pakistan by overseas Pakistanis.
He made these remarks during a meeting of the National Assembly Standing Committee on Finance. The committee discussed taxation policies for both imported and locally manufactured mobile devices.
Chairman Langrial indicated that the government is specifically reviewing duties on low-value used mobile phones, a category frequently imported by expatriates. The FBR expects to finalise a detailed report proposing these tax reductions by March 2026.
This move aims to provide tangible relief to the overseas diaspora, whose remittances are a critical source of foreign exchange for Pakistan’s economy.
PTA Chairman Maj. Gen. (R) Hafeez ur Rehman provided market context during the briefing. He revealed that 94% of mobile phones in Pakistan are now locally manufactured, with only 6% being imported. Locally produced phones are subject to a modest 5-6% tax rate.
Read: Pakistan Revises FBR Tax Target Down by Rs300-500B
Customs Member Shakeel Shah shared revenue figures. The government collected Rs82 billion in taxes from mobile phone purchases this fiscal year. Imported phones contributed Rs18 billion to this total.
MNA Ali Qasim Gillani tabled a specific proposal during the meeting. He suggested allowing overseas Pakistanis to bring one mobile phone tax-free each year. Gillani argued that current duties, especially on high-end devices, are prohibitively high.
He cited the example of an iPhone 12, where taxes now exceed the device’s price. Gillani emphasised that expatriates sending billions in remittances deserve reciprocal relief. The committee discussed this proposal constructively. Members agreed to review tax incentives for overseas Pakistanis further potential positive developments in future fiscal policy.
