Imported mobile phones priced above Rs139,000 to become 25% more expensive

Prepare for a pinch in your pocket as the cost of imported mobile phones is set to rise in Pakistan.

The Finance Bill 2024 has introduced a hefty 25 per cent sales tax on smartphone imports, along with IMEI registration, as part of the 2024-25 budget.

This tax applies to phones valued above PKR 139,312 ($500), which includes most high-end and premium models.

Popular flagships like the Samsung Galaxy S series and upcoming iPhones such as the iPhone 15 and iPhone 14 are among those affected. With their prices already soaring above Rs139,000, this tax increase will hit consumers hard.

But there’s a twist: the 25 per cent tax only applies to fully assembled phones priced above $500. Phones in various stages of assembly, as well as locally manufactured ones, will still be taxed at 18 per cent, regardless of their value.

For phones priced below $500, a flat 18 per cent tax rate will be applied, whether they’re fully assembled, partially assembled, or not assembled at all.

This move is expected to boost government revenue by around Rs33 billion. So, brace yourselves for higher phone bills in the near future.