The Federal Board of Revenue (FBR) has introduced a new sales tax policy, effective from July 25, 2024, which is set to impact mobile phone prices significantly. Under the updated Sales Tax Act, 1990, a 25% sales tax will be imposed on completely built-up (CBU) mobile phones valued over $500, while those priced under $500 will face an 18% tax. Locally assembled CBU phones, as well as imports in completely knocked down (CKD) or semi-knocked down (SKD) forms, will also be taxed at 18%. The new financial year’s budget suggests imposing a federal excise duty (FED) on imported mobile phones, raising the Pakistan Telecommunication Authority (PTA) tax, and further increasing the General Sales Tax (GST) on these imports.