More than two months after first promising it, the Federal Board of Revenue (FBR) has formally allowed individuals to pay sales tax on imported mobile phones — commonly known as PTA tax — in installments rather than as a single lump sum. There’s one important catch, though: the actual payment system isn’t live yet.
What Changed
The facility was introduced through a new provision added to the Ninth Schedule of the Sales Tax Act, 1990, under amendments made in the Finance Act, 2026, and formally detailed in FBR Circular No. 1 of 2026, issued on September 11. Under the new rule, individuals importing a mobile phone can split their sales tax liability into multiple payments instead of paying the entire amount upfront at the time of registration.
The installment facility will operate through the Pakistan Telecommunication Authority’s Device Identification, Registration and Blocking System (DIRBS) — the same system already used to register imported phones for use on local Pakistani networks.
The Key Condition You Need to Know
This isn’t an open-ended payment plan. All installments must be paid in full before the end of the financial year in which the phone was imported. In practical terms, that means the later in the fiscal year you import your phone, the shorter your effective installment window will be — someone importing a phone in July has significantly more time to spread out payments than someone importing one in May or June, just before the fiscal year closes.
It’s also worth being clear about what this facility does and doesn’t do: it does not reduce the total tax owed. It only changes how that same amount can be paid — spread across multiple payments instead of one lump sum at registration.
What’s Still Missing: The Actual Mechanism
Here’s the catch — FBR has only provided the legal framework so far. The facility is not yet operational. The Pakistan Telecommunication Authority (PTA) still needs to build the actual payment mechanism within DIRBS before anyone can actually start paying in installments. Several details remain unannounced, including:
- The exact number of installments allowed
- The payment frequency (monthly, quarterly, etc.)
- The detailed step-by-step procedure users will follow within DIRBS
Notably, there had been some institutional back-and-forth on this issue before the FBR circular landed — PTA officials had previously distanced themselves from responsibility for collection, telling a National Assembly committee they weren’t fully aware of what had been discussed between FBR and PTA leadership on the matter. This latest circular puts the legal groundwork in place, but the operational ball is now clearly in PTA’s court.
How This Story Developed
| Date | Development |
|---|---|
| June 21, 2026 | National Assembly Standing Committee on Finance directs FBR to work with PTA on an installment proposal, citing millions of non-PTA-registered phones in the market |
| June 23, 2026 | Finance Bill 2026-27 passed in the National Assembly, including provisions for an installment facility |
| ~Early September 2026 | PTA distances itself from collection responsibility during committee questioning; mechanism remains unclear |
| September 11, 2026 | FBR issues Circular No. 1 of 2026, formally establishing the legal provision for installment payments |
Why This Matters
The upfront sales tax on imported mobile phones has long been one of the biggest barriers for Pakistanis wanting to use a phone bought or brought in from abroad, particularly for higher-end devices where the tax bill can run into tens of thousands of rupees paid all at once. Lawmakers pushing for this change specifically pointed out that consumers routinely buy even low-cost products on installments elsewhere in the economy, arguing there was no clear reason mobile phone tax should be treated differently. Once PTA’s payment mechanism is actually up and running, this facility could meaningfully ease that upfront financial burden — particularly for people importing expensive smartphones.
What to Do in the Meantime
If you’re planning to import a phone soon, it’s worth holding off on registering through DIRBS until PTA confirms the installment mechanism is live, if spreading out the tax payment matters to your budget — since the legal right to pay in installments doesn’t help until there’s an actual system to use it through. Keep an eye on PTA’s official announcements and DIRBS portal for updates on when the facility actually becomes usable.
Final Thoughts
FBR has cleared the legal hurdle for installment payments on PTA phone tax, but the real test is still ahead: whether PTA can build and launch a working payment mechanism within DIRBS in a reasonable timeframe. Given that all installments must still be cleared within the same financial year of import, the practical benefit to consumers will depend heavily on how quickly — and how flexibly — PTA rolls out the actual system.
