Customs increases import valuation for 62 old and used mobile phone models

From the perspective of Dawn, a leading Pakistani newspaper, the Federal Board of Revenue's (FBR) recent decision to hike customs valuations on older and used mobile phones, despite assurances of reduced rates, highlights a disconnect between regulatory pronouncements and market realities. This move, encapsulated in Valuation Ruling No. 2070 of 2026, directly contradicts expectations set before the upcoming budget, creating uncertainty for importers and consumers alike.

The FBR's justification—aligning assessed values with market rates—is a standard administrative argument, but its timing and impact are particularly noteworthy. The Directorate General of Customs Valuation's decision, following a stakeholder meeting, suggests a deliberate policy shift. The sharpest increases are seen in Google Pixel and Samsung models, indicating a targeted revision that could significantly affect the cost of popular second-hand devices. While Apple devices also saw increases, they were comparatively moderate, especially for newer models.

This policy has immediate implications for Pakistan's burgeoning mobile import market, which saw a substantial 27.84% growth in the first nine months of the fiscal year. The increased customs values translate directly into higher duties and taxes per handset. Importers dealing in mid-range and older flagship phones, often catering to a broader segment of the population, will bear the brunt of this cost escalation. This could potentially stifle the market for affordable refurbished devices, pushing prices up for consumers who rely on these options.

Furthermore, the FBR's move to raise revenue through increased valuations, even as senior officials had previously assured a parliamentary committee about potential reductions, raises questions about policy coherence. While the FBR anticipates increased revenue, the long-term impact on market dynamics and consumer affordability remains a concern. Dawn will continue to monitor these developments and their effect on the Pakistani economy and its consumers.