Pakistan to impose 20% excise tax on imported smartphones

Govt plans to start dedicated refurbishment facilities within export processing zones
An undated image of different smartphones. — Shutterstock
An undated image of different smartphones. — Shutterstock

The federal government has proposed a plan to impose a 20% excise duty on imported smartphones as part of new policy with an aim of promoting local manufacturing in Pakistan and achieving up to $400 million in exports of refurbished phones. 

Prime Minister Shehbaz Sharif-led government also plans to establish Rs56 billion technology investment fund to promote local manufacturing of smartphones and other electronic devices that will save the expense of importing smartphones in Pakistan.

The Engineering Development Board (EDB) has finalised the Mobile and Electronics Manufacturing Framework, under which refurbished mobile re-exports are projected to generate $400 million annually.

Under the plan, the authorities plan to impose 10% customs duty on the completely built unit (CBU) structure of notebooks, desktops, and tablets. Customs duty of up to 10% will also be imposed on the completely knocked down (CKD) structure.

To facilitate this, the government plans to establish refurbishment facilities within export processing zones, operating under strict customs supervision with controls like IMEI registration and time-bound re-export requirements.

Special Assistant to the Prime Minister Haroon Akhtar Khan said: "Leading global companies, including Apple and Samsung, would be invited to establish manufacturing plants in Pakistan. The policy is expected to promote employment generation, technology transfer and foreign investment."

This framework will boost government's efforts to industrial modernisation, export-led growth and positioning Pakistan as a competitive player in the global electronics value chain.