Pakistan’s Finance Act 2026 allows taxes on imported mobile phones to be paid in installments, but the practical mechanism through DIRBS is yet to be finalized.
The Federal Board of Revenue (FBR) has cleared the legal path for individuals to pay taxes on imported mobile phones in installments, offering potential relief to consumers who face large upfront payments when registering expensive handsets in Pakistan.
The provision was introduced through amendments to the Ninth Schedule of the Sales Tax Act, 1990, under the Finance Act 2026. The amended law allows an individual liable to pay tax on an imported mobile phone through the Device Identification, Registration and Blocking System (DIRBS) to pay the amount in installments under a procedure to be prescribed.
However, the change does not mean that the mobile phone tax has been waived or that users can delay payment indefinitely. The law requires all installments to be paid before the end of the financial year in which the mobile phone is imported.
The provision became effective with the Finance Act 2026 from July 1, 2026. While the legal framework for installment payments is now in place, the detailed operational mechanism, including how many installments will be available and how payments will be processed, remains subject to the prescribed procedure.
The distinction is important because the facility should not be interpreted as a fully operational monthly payment system already available to every mobile phone user.
Recent discussions have also highlighted uncertainty over which authority will implement the collection mechanism. During a committee meeting, PTA officials reportedly clarified that the levy commonly referred to as “PTA tax” is not collected by the Pakistan Telecommunication Authority. The authority therefore questioned why it would be responsible for preparing an installment plan.
Under the existing framework, DIRBS is used for identifying and registering mobile devices and for enforcing compliance with applicable tax and registration requirements. The new legal provision specifically refers to imported mobile phone devices registered through DIRBS.
The development is particularly relevant for people bringing high-value smartphones into Pakistan, as the applicable taxes can represent a substantial upfront cost. Allowing payments to be spread across installments could make the financial burden easier to manage while retaining the requirement to settle the full liability within the relevant financial year.
The government had earlier announced its intention to introduce an installment facility for imported mobile phone taxes, and the provision was subsequently included in the Finance Act 2026.
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