Islamabad

Pakistan’s tax authorities have significantly increased customs valuation on dozens of imported second-hand mobile phones, a move expected to drive up prices in the local market.

According to official documents, the Federal Board of Revenue (FBR) has revised valuation benchmarks for at least 62 models of used mobile devices, raising duties and taxes by as much as 175 per cent.

Prices of Used Phones Likely to Rise

The revised valuation means higher import duties on used smartphones, making them more expensive for consumers and traders alike. Industry observers say the increase will particularly impact budget-conscious buyers who rely on second-hand devices.

Officials said the new values will apply regardless of the condition or grade of the imported phones, tightening the regulatory framework for commercial imports.

New Valuation Ruling Issued

The updated benchmarks have been introduced through a fresh valuation ruling issued by the Directorate General of Customs Valuation, replacing earlier rates set earlier this year.

The policy applies to used mobile phones imported in bulk without original packaging or accessories, a segment that forms a significant portion of Pakistan’s grey and secondary mobile market.

Aim to Align With Market Prices

Authorities say the move is intended to align declared values with prevailing international market prices and curb under-invoicing, a longstanding concern in the import of used electronics.

However, market analysts warn that the higher valuation could increase handset prices, potentially slowing demand and affecting small-scale traders involved in the used mobile phone business.

Impact on Consumers

With smartphone penetration rising in Pakistan, the decision is likely to have a broader impact on affordability, particularly for low- and middle-income users who depend on cheaper, pre-owned devices.

The development comes as the government continues efforts to regulate the mobile device ecosystem and improve tax compliance in the sector.