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Imported Smartphone Prices May Drop in Pakistan: Tax Reduction Expected in Budget 2026-27

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The federal budget for the upcoming fiscal year 2026–2027 will be revealed on June 5, and budget negotiations with the IMF have already been concluded. However, mobile phone users are receiving both positive and negative news.

According to reports, plans are being made to keep the present PTA tax structure on imported expensive smartphones in the 2018 budget. As a result, high-end smartphone users may not see quick relief.

On the other hand, according to an expected proposal, the import tax on mobile phones could be reduced from 25% to 18%. If approved, this could result in lower prices for devices that cost more than $500, including iPhones, Samsung flagship phones, and other premium smartphones.

There are also reports of local smartphone companies strongly opposing the tax reduction, as lower duties would make imported phones cheaper and could impact the local market.

Phones bought from abroad or imported through unauthorized means are only permitted to function for a certain amount of time under PTA’s present registration system unless heavy duties are paid. These taxes are one of the primary causes of the continued high cost of high-end smartphones.

Consumers who already struggle with inflation may find flagship devices pricing even more expensive if the budget does not contain a cut in mobile phone import taxes.

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