Govt Plans 20% Excise Duty on Imported New & Used Mobile Phones From March 2026
The Government of Pakistan is planning to impose a 20% excise duty on imported new and used mobile phones from March 2026. This proposed decision has created serious discussion among mobile phone buyers, importers, retailers, and overseas Pakistanis.
Many people are searching on Google:
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In this detailed article, we will explain everything in easy English, including what excise duty means, why the government is introducing it, how it will affect mobile prices, and what buyers should do before March 2026.
What Is Excise Duty?
Excise duty is a tax imposed by the government on specific goods. It is usually charged on products that are imported or manufactured.
In Pakistan, excise duty is managed by the Federal Board of Revenue (FBR).
If the 20% excise duty is implemented, it means:
- The government will charge 20% tax on the value of imported mobile phones.
- This will apply to both new and used smartphones.
- The tax will increase the final retail price.
Why Is the Government Planning 20% Excise Duty on Mobile Phones?
There are several possible reasons behind this decision:
1. Increase Government Revenue
Pakistan is currently facing economic challenges. The government is trying to increase tax collection.
Mobile phones are high-demand products. Taxing them can generate billions of rupees in revenue.
2. Control Imports & Dollar Outflow
Imported smartphones require foreign currency payments. This increases pressure on Pakistan’s foreign reserves.
By increasing taxes, the government aims to:
- Reduce mobile imports
- Control dollar outflow
- Improve trade balance
3. Encourage Local Mobile Manufacturing
Pakistan has recently promoted local assembly of smartphones under mobile manufacturing policies.
A higher tax on imported phones may:
- Encourage local assembly plants
- Support “Made in Pakistan” devices
- Create employment opportunities
Will This 20% Excise Duty Apply to All Mobile Phones?
According to discussions and reports, the proposed duty will apply to:
✔ New imported smartphones
✔ Used imported smartphones
✔ Commercial imports
✔ Possibly passenger baggage phones (depending on policy details)
However, the final notification from the government will clarify exact categories.
Impact of 20% Excise Duty on Mobile Phone Prices
If this duty is implemented in March 2026, mobile prices in Pakistan will increase significantly.
Let’s understand with an example:
Example 1: Imported Phone Worth Rs. 100,000
20% Excise Duty = Rs. 20,000
New Price = Rs. 120,000 (before other taxes)
After adding:
- PTA tax
- Sales tax
- Retail margin
Final price may go much higher.
Effect on Popular Smartphone Brands
This policy will impact imported brands such as:
- Apple Inc.
- Samsung Electronics
- Xiaomi
- Oppo
- Vivo
Premium phones like iPhones may become even more expensive.
Impact on Used Mobile Phone Market in Pakistan
Pakistan has a large market for used imported phones.
Many small traders import used phones from:
- UAE
- UK
- USA
If 20% excise duty is applied to used phones:
- Prices of second-hand phones will increase
- Middle-class buyers will face difficulty
- Online resellers may raise prices
Will PTA Tax Also Increase?
Many people are confused between:
- Excise duty
- PTA tax
PTA tax is separate and regulated by the Pakistan Telecommunication Authority.
If excise duty increases, total tax burden will increase, but PTA tax structure may remain unchanged unless separately revised.
How Will This Affect Overseas Pakistanis?
Overseas Pakistanis often bring mobile phones when visiting Pakistan.
If the government includes baggage phones in the excise duty category:
- Registration cost may increase
- Bringing multiple phones may become expensive
- Travelers may need to declare phones at airport
Official clarification will be needed.
Impact on Online Shopping & E-Commerce
Many people buy phones from:
- Daraz
- Local online stores
- Social media sellers
After March 2026:
- Online prices may increase
- Flash sales may become limited
- Installment plans may change
Retailers will adjust prices according to new tax structure.
Will Locally Assembled Phones Be Cheaper?
Locally assembled phones may become more attractive because:
- They may not be affected by import excise duty
- Government may support local production
- Prices may remain comparatively stable
This could boost demand for locally assembled devices.
Economic Benefits & Drawbacks
Possible Benefits
✔ Increased government revenue
✔ Reduced imports
✔ Boost to local manufacturing
✔ Better trade balance
Possible Drawbacks
✔ Higher smartphone prices
✔ Burden on middle class
✔ Reduced smartphone accessibility
✔ Slowdown in mobile market sales
Should You Buy a Phone Before March 2026?
If you are planning to buy:
- High-end imported phone
- iPhone
- Samsung flagship
- Used imported smartphone
It may be better to buy before March 2026 if excise duty becomes official.
However, always wait for official government notification before making financial decisions.
How Will This Affect Mobile Repair & Accessories Market?
Higher phone prices may result in:
- Increased demand for phone repair
- Longer usage of old devices
- Rise in refurbished market
- Growth in accessories sales
Consumers may avoid upgrading frequently.
Final Thoughts
The proposed 20% excise duty on imported new and used mobile phones from March 2026 could significantly impact Pakistan’s mobile market.
While the government aims to increase revenue and control imports, consumers may face higher prices. Buyers, traders, and overseas Pakistanis should stay updated with official announcements from FBR and relevant authorities.
Before making any purchase decision, always verify official notifications and calculate total cost including PTA tax and other charges.
The coming months will clarify how this policy shapes Pakistan’s smartphone market in 2026.
