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Anyone waiting for another cut in the mobile phone import tax will be disappointed for now. Finance Minister Senator Muhammad Aurangzeb has told the National Assembly that no further changes to the taxation of imported handsets are under consideration.
His written reply says the relief announced in the 2026-27 budget has already been implemented. The answer came as industry and consumers continued to ask for a more rational tax regime to support digital inclusion and lower costs.
What the budget already changed
The minister listed two cuts for phones valued between $100 and $200. Tax on these devices fell from Rs930 to Rs100. The mobile handset levy fell from Rs600 to Rs200.
He also said the rates of the Mobile Handset Levy and Regulatory Duty were revised as part of tax rationalisation under the Finance Act, 2026. The reply did not give the revised regulatory duty rates.
The income tax reduction works out to roughly 89 percent, and the levy cut to about two-thirds. The reply does not say which phone categories the levy change covers.
Why the government says it is done
According to the minister, the matter was examined during the 2026-27 budget exercise and discussed at length by the National Assembly Standing Committee on Finance and Revenue. Consultations also took place with several sectors, including the information technology industry, before the budget was framed.
The government’s position is that everything discussed during the budget proceedings has been implemented. In practice, that closes the door on further handset tax adjustments at present.
IT sector measures in the same reply
On wider support for the IT sector, Aurangzeb said the 0.25 percent income tax rate on exports of IT services has been extended until 2029. He described it as a major industry demand.
He added that income tax and sales tax on digitally acquired services and supplies were already capped at a maximum of two percent under the Finance Act, 2025-26.
Why handset tax matters
Duties and taxes add to the price of legally imported phones. Lower taxation can make handsets more affordable and widen access to digital services. Further cuts would also reduce government revenue, a trade-off the reply does not discuss in numbers.
The reply gives no estimate of revenue lost or gained from the budget changes. It also does not say how retail prices have responded.
The minister did not name a date for any future review. He repeated that the existing rationalisation measures are in force. That leaves consumers and importers without a signal about when the question might return. The next budget is the obvious point, but the reply does not say so.
The government has made the affordability case in the budget and the revenue case in the reply. Retail price data, tax collection figures on handsets and a stated review date would let the public see whether the two arguments agree.
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