ISLAMABAD – The Federal Board of Revenue (FBR) has allowed individuals to pay sales tax on imported mobile phones in installments, more than two months after the government first announced the facility.
The new arrangement will operate through the Pakistan Telecommunication Authority’s (PTA) Device Identification, Registration and Blocking System (DIRBS).
FBR introduced the measure through a new provision in the Ninth Schedule of the Sales Tax Act, 1990. The tax authority explained the change in Circular No. 1 of 2026, issued on September 11.
Buyers can split tax payments
Under the new provision, individuals will no longer have to pay the entire sales tax liability on an imported mobile phone at once.
Instead, they can divide the payment into instalments. There is, however, a deadline for clearing the full amount. All instalments must be paid before the end of the financial year in which the mobile phone is imported.
The facility therefore provides payment flexibility without reducing or delaying the overall tax liability beyond the prescribed financial year.
PTA to introduce payment mechanism
While the FBR has approved the installment facility, the next step rests with the PTA.
The telecom regulator will need to introduce a mechanism through DIRBS that allows individuals to make installment payments and complete the registration process under the new arrangement.
The facility was introduced through amendments made under the Finance Act, 2026.
What is DIRBS?
Pakistan introduced the Device Identification, Registration and Blocking System (DIRBS) in December 2018.
The system was designed to identify mobile phones that were not registered and block devices that failed to meet the country’s tax and registration requirements.
Since its introduction, individuals bringing mobile phones into Pakistan from abroad have generally had to pay the applicable duties and taxes before registering their devices for use on local mobile networks.
The government also withdrew the duty-free facility for mobile phones brought into the country by travellers from abroad in July 2019.
The new installment arrangement changes the payment process by allowing eligible individuals to spread their sales tax payments over multiple instalments, while still requiring the full liability to be cleared within the relevant financial year.
Key points:
- The Federal Board of Revenue (FBR) has allowed individuals to pay sales tax on imported mobile phones in installments.
- The facility will operate through the Pakistan Telecommunication Authority’s DIRBS system.
- The change was introduced through a new provision in the Ninth Schedule of the Sales Tax Act, 1990.
- FBR explained the measure in Circular No. 1 of 2026, issued on September 11.
- Buyers must clear all instalments within the financial year in which the mobile phone is imported.
- The Pakistan Telecommunication Authority (PTA) will now have to establish a mechanism for processing installment payments.
- The facility follows amendments introduced through the Finance Act, 2026.
