The government has reduced duties on imported mobile phones for FY2026-27. Both regulatory and additional customs duties saw notable cuts. According to the Ministry of Commerce, high-end phones benefit most significantly. The regulatory duty on smartphones above $500 fell sharply.
Specifically, that duty dropped from Rs22,000 to Rs17,600 per phone. This represents a reduction of Rs4,400, or 20%, per handset. Meanwhile, Additional Customs Duty fell from 6% to 4% overall. This cut applies across all listed smartphone and cellular-phone categories.
Here is the complete breakdown of mobile import statistics:
| Mobile Category | Import Value FY2024-25 (US$ Million) | Import Value FY2025-26 (US$ Million) |
| Smartphones (CKD/SKD) | 1,250.94 | 1,454.65 |
| Smartphones (CBU) | 146.62 | 357.70 |
| Cellular phones (CKD/SKD) | 92.21 | 74.76 |
| Cellular phones (CBU) | 6.80 | 1.25 |
| Total | 1,496.57 | 1,888.37 |
Here is the complete revised RD structure for CBU smartphones:
| Smartphone Value (USD) | Previous RD (FY2025-26) | New RD (FY2026-27) |
| Up to $30 | Rs. 300 | Rs. 240 |
| $30 to $100 | Rs. 3,000 | Rs. 2,400 |
| $100 to $200 | Rs. 7,500 | Rs. 6,000 |
| $200 to $350 | Rs. 11,000 | Rs. 8,800 |
| $350 to $500 | Rs. 15,000 | Rs. 12,000 |
| Above $500 | Rs. 22,000 | Rs. 17,600 |
The revised regulatory duty slabs cover several price brackets. Phones up to $30 now carry Rs240, down from Rs300. The $30 to $100 range fell from Rs3,000 to Rs2,400. Similarly, the $100 to $200 bracket dropped to Rs6,000.
The reductions continue across the higher price ranges too. The $200 to $350 slab fell from Rs11,000 to Rs8,800. Additionally, the $350 to $500 range dropped to Rs12,000. Each slab therefore sees a meaningful duty reduction overall.
The changes also extend to locally assembled devices. For CKD and SKD imports, regulatory duty fell from 5% to 4%. Their Additional Customs Duty likewise dropped from 6% to 4%. Consequently, both imported and assembled phones benefit from the changes.
The Ministry of Commerce explained the reasoning behind the cuts. They form part of the FY2026-27 Budget measures. Furthermore, they support broader tariff rationalisation efforts nationally. This falls under the National Tariff Policy 2025-30 specifically.
The timing follows a sharp rise in phone imports. Total smartphone and cellular imports jumped considerably in FY2025-26. They rose from $1.497 billion to $1.888 billion overall. Notably, CBU smartphone imports more than doubled to $357.7 million.
The ministry also addressed the manufacturing policy situation directly. The Mobile Device Manufacturing Policy 2020-25 has now expired. However, a replacement policy awaits federal government approval. Existing incentives remain protected under the Customs Act meanwhile.
Ultimately, these tariff cuts reduce the burden on imported handsets. Yet the government simultaneously seeks to promote domestic assembly. Balancing cheaper imports with local manufacturing remains the key challenge. For consumers, though, the changes could eventually mean lower phone prices.
