Used imported mobile phones prices to fall as FBR revises customs values

Used imported mobile phones prices to fall as FBR revises customs values

Used imported mobile phones prices in Pakistan are expected to decline after the Federal Board of Revenue (FBR) revised customs valuation rates for old and used mobile phone imports, a move aimed at aligning assessed values with international resale prices and easing tax pressure on consumers.

The Directorate General of Customs Valuation in Karachi has issued updated valuation rulings covering 62 models from Apple, Samsung, Google Pixel and OnePlus, The News reported. Officials said the revision would directly reduce Pakistan Telecommunication Authority (PTA) taxes on imported used smartphones.

Under the new framework, customs values for used iPhones have been revised downward by 32% to as much as 89%, significantly lowering the tax burden. Apple devices, which dominate Pakistan’s secondary phone market, will now be valued between $95 and $295 depending on model, generation and depreciation level.

Customs values for widely used models such as the iPhone 11, iPhone 12 and iPhone 13 series have been cut sharply, while higher-end devices including the iPhone 14 and iPhone 15 series have also been brought under the revised valuation regime. Older models nearing end-of-life were given deeper depreciation to better reflect global resale trends.

For other brands, Samsung Galaxy phones have been valued between $40 and $255, Google Pixel devices between $30 and $260, while OnePlus models fall largely in the range of $60 to $185. Officials said the revised rates are intended to mirror realistic international resale prices rather than inflated domestic retail benchmarks.

According to officials involved in the valuation exercise, the earlier system created frequent disputes at ports over uplifted values, allegations of under-invoicing and disagreements regarding phone condition and grading. These issues often delayed clearance and increased costs that were ultimately passed on to buyers.

By introducing uniform valuations irrespective of physical condition and aligning prices with global markets, the new ruling is expected to reduce import friction, improve supply and ease price pressures in Pakistan’s used mobile phone market.

Officials believe the move will particularly benefit students, freelancers, gig-economy workers and low-income users who rely on affordable smartphones for internet access, online education, digital payments and remote work.

Despite the expected reduction in per-handset tax collection, policymakers argue that broader economic benefits outweigh short-term revenue losses. Higher smartphone penetration is expected to support productivity growth and expand participation in Pakistan’s digital economy.

As an example, customs valuation for the iPhone 13 Pro Max has been reduced from $450 to $290, a cut of 46%, while the iPhone 13 Pro was revised from $360 to $225, reflecting a 60% decrease. Valuation for the iPhone 12 Pro dropped by 81%, from $280 to $155, while the iPhone 12 fell from $185 to $120.

Under the revised framework, PTA taxes on the iPhone 15 series have also been lowered. A used iPhone 15, priced at an average of $350 internationally, is expected to cost around Rs130,000 in Pakistan after PTA tax, while the iPhone 15 Pro Max could retail at approximately Rs175,000.

Officials described the valuation revision as part of a broader policy shift prioritising affordability, digital access and long-term economic participation rather than maximising immediate tax collection, saying its success would be judged by wider indicators of digital inclusion and economic activity.