Pakistan cuts regulatory duty on imported smartphones by up to 20%

By ISLAMABAD: The government has slashed regulatory and additional customs duties on imported mobile phones for the fiscal year 2026–27, bringing down the regulatory duty on premium smartphones priced above $500 from Rs22,000 to Rs17,600 per unit, according to a commerce ministry brief. Under the revised tariff structure, Additional Customs Duty (ACD) has been reduced from 6% to 4% across the listed smartphone and cellular-phone categories, while regulatory duty has also been lowered. For CBU smartphones, the new RD slabs are: Up to $30: Rs240, down from Rs300 $30-$100: Rs2,400, down from Rs3,000 $100-$200: Rs6,000, down from Rs7,500 $200-$350: Rs8,800, down from Rs11,000 $350-$500: Rs12,000, down from Rs15,000 Above $500: Rs17,600, down from Rs22,000 This means the RD reduction on phones above $500 is Rs4,400 per handset, or 20%. For smartphones and cellular phones imported in CKD/SKD condition, the regulatory duty has been reduced from 5% to 4%, while ACD has been cut from 6% to 4%. The Ministry of Commerce said the reductions were made under the FY2026-27 Budget, as part of broader tariff rationalisation under the National Tariff Policy 2025-30. The tariff changes come as Pakistan's mobile-phone imports recorded a sharp increase in FY2025-26. Total imports of smartphones and cellular phones rose from $1.497 billion to $1.888 billion, while CBU smartphone imports more than doubled to $357.7 million. The ministry noted that the Mobile Device Manufacturing Policy 2020-25 has expired, while a new policy has yet to be approved by the federal government. Incentives available to mobile manufacturers and assemblers under the expired policy, however, remain protected under the Fifth Schedule of the Customs Act, 1969. The tariff cuts are expected to reduce the duty burden on imported handsets while the government simultaneously seeks to promote domestic mobile-device assembly and manufacturing.