Used Imported Smartphones Become Costlier After Massive Tax Hike in Pakistan

Pakistan has significantly increased duties on used imported mobile phones by revising customs valuation by up to 175%, a move expected to raise prices for dozens of popular smartphone models and impact consumers across the country.

The Federal Board of Revenue issued a new valuation ruling under which taxes will now be calculated on higher benchmark prices, making at least 62 models from leading brands more expensive in the local market.

Major Price Impact on Popular Devices

Under the revised framework, customs values for widely used smartphones have been sharply increased, directly raising the tax burden on imports. For example, the valuation of a used iPhone 15 Pro Max has been raised from $460 to $505, while the iPhone 15 Pro increased from $390 to $472.

Similar increases have been applied across multiple brands. Samsung Galaxy S23 Ultra’s valuation rose from $255 to $305, while Google Pixel and OnePlus devices also saw notable upward revisions.

Officials said the new valuation system replaces the previous ruling and is based on updated import and market data. Duties and taxes will now be collected on these revised values, making used phones considerably more expensive for importers and ultimately consumers.

New Rules Apply Regardless of Condition

The updated policy applies uniformly to all used phones, regardless of their condition or grading, a change that is likely to affect the secondary smartphone market in Pakistan.

The FBR clarified that imported used phones must have been activated at least six months prior to shipment. Importers will be required to provide activation details, which will be verified by customs authorities.

Additionally, the ruling states that even if phones are imported without packaging or accessories, the same customs valuation will apply. If a model is not listed, its value will be determined under existing customs laws.

Wider Market and Economic Impact

Analysts say the move is likely to push up retail prices in Pakistan’s already expensive smartphone market, particularly affecting consumers who rely on used imported devices due to affordability constraints.

Pakistan’s mobile market has a large share of second-hand devices, especially among students, freelancers and lower-income users who depend on affordable smartphones for work and connectivity.

Experts note that while the government may aim to curb under-invoicing and improve tax collection, the increase could slow smartphone adoption and digital access if prices rise sharply.

At the same time, some industry observers believe the policy could indirectly support local assembly and manufacturing by making imported used devices less competitive.

With enforcement orders issued to customs authorities across the country, the new valuation ruling is expected to take immediate effect, reshaping pricing dynamics in Pakistan’s mobile phone market.

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