FBR introduces an instalment facility for sales tax on imported mobile phones under the revised Ninth Schedule.
ISLAMABAD: The Federal Board of Revenue (FBR) has allowed individuals to pay sales tax on imported mobile phones in instalments, introducing a new payment facility under the revised Ninth Schedule of the Sales Tax Act, 1990.
The FBR explained the measure in Sales Tax Circular No. 1 of 2026, issued to clarify major amendments to the Sales Tax Act, 1990 introduced through the Finance Act, 2026.
Sales tax instalments allowed for imported phones
According to the FBR, a new sub-clause (vi) has been inserted under the “Liability, Procedure and Conditions” section of the Ninth Schedule.
The amendment allows an individual to pay the sales tax applicable to an imported mobile phone in instalments through the Pakistan Telecommunication Authority (PTA) blocking system.
However, the facility is subject to the condition that all instalments must be paid before the end of the financial year in which the mobile phone is imported.
This means eligible individuals can spread their sales tax payments over multiple instalments instead of paying the entire liability at once, provided the full amount is cleared within the prescribed timeframe.
New facility under Finance Act 2026
The revised mechanism is intended to provide greater flexibility to individuals liable to pay sales tax on imported mobile phones while ensuring that the tax is fully recovered within the relevant financial year.
The FBR said the new provision forms part of the amendments introduced through the Finance Act, 2026 and is aimed at facilitating taxpayers while maintaining the existing tax collection framework for imported mobile phones.
The instalment facility therefore provides taxpayers with an alternative way to settle their sales tax liability without changing the requirement to pay the full amount within the financial year in which the phone is imported.
The measure is expected to make the payment process more flexible for individuals importing mobile phones while allowing the FBR to retain the existing mechanism for recovering the applicable sales tax.