KARACHI – Pakistan’s mobile phone users got update as PTA dramatically slashed cost of registering high-end smartphones.
For years, imported mobile devices enjoyed sales tax exemption in Pakistan. That relief came to an abrupt end in 2021 when the federal government, under IMF-backed reform agenda, withdrew exemption. The decision sent prices of imported phones soaring and pushed millions of users toward the used-phone market.
The scale of Pakistan’s dependence on imported and used phones is staggering. Official figures show that mobile phones worth more than Rs 417 billion were imported during fiscal year 2024–25, compared to Rs 535 billion during the same period in 2023–24.
Under Pakistani law, any imported mobile phone must be registered with PTA to function with a local SIM. However, one of the biggest complaints from consumers has been the heavy taxes imposed on used phones, often making registration unaffordable. As a result, many users simply avoid PTA registration altogether and use their phones on Wi-Fi only.
This week, social media erupted with claims that the PTA had reduced taxes on imported mobile phones. While many users celebrated, others quickly challenged the narrative, arguing that tax rates remain unchanged and that the actual relief comes from a sharp reduction in customs values, not from a tax cut.
According to a notification issued by DG Customs Valuation, Karachi, the government has revised and significantly reduced the customs values of 62 categories of old and used branded mobile phones. The brands benefiting from this decision include Apple (iPhone), Samsung, Google Pixel, and OnePlus.
The notification clarifies that these new values apply to used phones imported without packaging or accessories.
Customs officials said the previous valuation was last updated one and a half years ago and no longer reflected real market prices. They admitted that many newer models were missing, while several phones on the old list had already completed their market life cycle. Crucially, the new customs values will apply to all listed models regardless of their physical condition.
How PTA Tax Is Calculated
According to the PTA, imported phones can be registered using either a passport or a CNIC, and the tax payable depends on the phone’s customs value.
PTA Phone Taxes
- Up to $30: Rs 430
- $30–$100: Rs 3,200
- $100–$200: Rs 9,580
- $200–$350: Rs 12,200 + 17% tax
- $350–$500: Rs 17,800 + 17% tax
- Above $500: Rs 27,600 + 17% sales tax
CNIC-based registration:
- Up to $30: Rs 550
- $30–$100: Rs 4,323
- $100–$200: Rs 11,561
- $200–$350: Rs 14,661 + 17% tax
- $350–$500: Rs 23,420 + 17% tax
- Above $500: Rs 37,007 + 17% sales tax
Which Phones Get Relief?
The revised list includes: 27 iPhone models, from the iPhone 15 and older models down to the iPhone XR, Samsung flagship phones, from Galaxy S23 Ultra down to S10e. Samsung Galaxy Note series, from Note 20 Ultra down to Note 9, 12 Google Pixel models, from Pixel 9 Pro XL down to Pixel 5a 5G and Five OnePlus models.
The scale of the reduction has shocked the market.
- iPhone 15 Pro Max
- Old customs value (256GB): $1,300
- New customs value: $460 (Rs 128,788)
- Samsung Galaxy S23 Ultra
- Old value: Over $1,000
- New value: $255 (over Rs 71,300)
New PTA Tax After Revision
Under the new customs valuation:
- Used iPhone 15 Pro Max
- Passport registration: Rs 39,693
- CNIC registration: Rs 45,313
- Samsung Galaxy S23 Ultra
- Passport registration: Rs 24,336
- CNIC registration: Rs 26,596
Despite viral claims, authorities have not reduced tax rates. Instead, the government has slashed customs values, indirectly reducing the PTA tax burden on premium used phones.
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