ISLAMABAD: Smartphone prices in Pakistan especially premium models from brands like Apple and Samsung have surged sharply due to heavy taxation, sparking fresh debate ahead of Budget 2026.
The issue has drawn the attention of the National Assembly Standing Committee on Finance, where lawmakers recently reviewed the high cost of mobile devices and called for urgent relief for consumers.
Currently, imported smartphones priced above $500 are subject to extremely high duties, with taxes reaching around Rs76,000nearly half the device’s value. For phones in the $700–$750 range, the total tax burden can climb to about 55%, making flagship devices increasingly unaffordable for most buyers.
In contrast, locally assembled phones are taxed at a much lower rate around 25% reflecting government efforts to promote domestic manufacturing. However, this has also created a significant gap between the prices of imported and locally produced devices.
The committee was informed that an 18% General Sales Tax (GST) continues to apply, along with additional charges such as income tax and a withholding tax of roughly Rs11,500 on high-end smartphones. Officials from the Federal Board of Revenue indicated that there is little flexibility at present to reduce GST or withholding tax, despite mounting criticism.
Committee Chairman Sayed Naveed Qamar raised concerns over the multiple layers of taxation, arguing that access to modern technology is essential for economic development. He questioned the rationale of imposing income tax on top of existing sales tax, describing the policy as excessive and potentially harmful to consumers.
While no final decision has been announced yet, the discussion has fueled expectations that some relief measures could be considered in the upcoming federal budget.
