ISLAMABAD — The Federal Board of Revenue has increased taxes on imported used mobile phones by revising customs valuation, a move expected to raise prices for consumers and affect the second-hand smartphone market in Pakistan.
The updated valuation framework applies to dozens of models and standardises how duties are calculated, with officials saying the change reflects current market trends and aims to improve transparency in imports.
Revised valuation and tax impact
According to official documents, the Directorate General of Customs Valuation has introduced a new mechanism under which taxes will be calculated based on updated benchmark values. The policy applies uniformly to all imported used mobile phones, regardless of their condition.
At least 62 models are expected to become more expensive as a result of higher assessed values under the revised system.
New compliance requirements
Authorities have also made it mandatory for importers to provide details about the activation status of devices. Imported phones must have been activated at least six months before import, according to the new rules.
The updated framework, issued as Valuation Ruling No. 2070, replaces the previous system, which has now been withdrawn.
Market implications
Market observers say the revised valuation is likely to increase prices of used smartphones, particularly affecting consumers who rely on refurbished or lower-cost imported devices.
The policy may also impact small-scale importers and traders, as higher taxes could reduce demand or shift buying patterns toward locally available or officially imported phones.
Government position
Officials say the changes are intended to ensure consistent tax collection and align import values with market realities, while improving regulatory oversight in the mobile phone sector.
Also read: Cheaper imported phones ahead as Pakistan revises ‘PTA tax’ values
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