Portable storage devices to become cheaper as Pakistan lowers duties

Pakistan’s Federal Board of Revenue (FBR) has revised customs valuation rates for imported USBs, flash drives and memory cards, lowering the dollar value used to calculate duties, according to an official notification.

The move follows a recent reduction in taxes on imported used mobile phones and is part of broader efforts to rationalize import duties on electronic goods.

Under the revised valuation, customs duty on a 16GB USB imported from China will be assessed at $0.78, while the same product imported from other countries will be valued at $1. Higher-capacity storage devices will face progressively higher valuations, with separate rates for imports from China and other countries.

For example, a 64GB USB imported from China will be taxed at a valuation of $1.17, compared with $1.52 for imports from other countries. A 1TB USB imported from China will incur a customs duty of $7.64, while the same device imported from other countries is valued at $9.93.

An economic analyst said the revised rates reflect changing market conditions and declining international prices for data storage devices.

“Global prices of flash storage have fallen sharply over the past year, and the previous valuation no longer reflected market realities,” said the analyst. “The adjustment should reduce costs for importers and eventually lower prices for consumers.”

Another analyst said the move could help curb under-invoicing and improve compliance.

“By bringing valuations closer to actual transaction prices, the FBR is trying to strike a balance between revenue collection and market competitiveness,” the analyst said.

The new valuation applies to USBs, flash drives and memory cards of varying capacities, including high-capacity devices up to 2 terabytes. The revised rates will be used to calculate customs duty, sales tax and other applicable levies on imports.