In a regulatory development for overseas Pakistanis, international travelers, and commercial importers, the Federal Board of Revenue (FBR) has formally notified Customs General Order (CGO) No. 06 of 2026, amending CGO No. 01 of 2019 to introduce a monthly instalment facility for sales tax on imported mobile devices registered via the Device Identification Registration and Blocking System (DIRBS).

The order inserts a new statutory paragraph—Paragraph 2(F)—creating an official deferred payment mechanism within the national tax framework. However, the notification introduces strict legal boundaries: the instalment concession applies exclusively to sales tax (not customs duties or other federal levies), must be completely cleared within the ongoing financial year (closing June 30), and triggers immediate DIRBS device blocking and total debt acceleration upon a single missed due date.

                 [CGO 06/2026: Sales Tax Instalment Lifecycle via DIRBS]
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           [Step 1: Applicant Elects Instalment Option on DIRBS at Registration]
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     [Step 2: Total Sales Tax Divided Equally by Remaining Months in Financial Year]
     (Includes the application month; all payments must conclude before June 30)
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     [Step 3: First Instalment Cleared Immediately via Initial PSID Generation]
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       ┌────────────────────────────────────┴────────────────────────────────────┐
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[COMPLIANT PAYMENT TRACK]                                               [DEFAULT TRACK]
• Subsequent PSIDs generated monthly on due date                        • Missing due date marks applicant a defaulter
• Advance early clearance permitted anytime                             • Device treated as unregistered & BLOCKED in DIRBS
• Full clearance finalized by June 30                                   • Total outstanding tax becomes immediately due
• Device remains continuously operational                               • Zero further instalment re-entry permitted

1. How the Monthly Instalment Structure Operates

Under the provisions of CGO 06/2026, the instalment plan is strictly bounded by Pakistan’s sovereign fiscal calendar:

• Application-Stage Election: The option to pay in instalments must be selected at the initial time of filing through DIRBS. Already-assessed historical liabilities cannot be retrospectively converted into this repayment scheme.
• Calculation of Instalments: The assessed sales tax is divided into equal monthly tranches equal to the number of months remaining in the financial year, counting the month of application.
• The June Rule: Devices registered in June are ineligible for multi-month deferral; the entire tax must be paid in a single tranche before June 30.
• PSID Mechanism: The first payment is settled via a Payment Slip Identifier (PSID) generated upon application, with subsequent separate PSIDs issued on the corresponding date of each succeeding month (or the final day of the month if that date does not exist).

2. The Penalty Clause: Strict Default & Automated Blocking

The FBR has incorporated a severe operational enforcement safeguard against non-payment. Where an applicant fails to settle an instalment by the due date:

1. Automated DIRBS Blocking: The mobile device is immediately designated as an unregistered handset, and the Pakistan Telecommunication Authority (PTA) will block its IMEI across all domestic cellular networks.
2. Immediate Debt Acceleration: The instalment facility is permanently revoked; the entire outstanding sales tax balance becomes due immediately in a single lump-sum demand.
3. No Re-Scheduling: Defaulters forfeit the right to re-apply for structured payments on the flagged device.

3. Strategic Guidance for Overseas Pakistanis & Travelers

While CGO 06/2026 provides working capital relief—preventing the immediate cash drain of paying steep upfront sales taxes on flagship smartphones (such as iPhones and high-end foldables)—applicants must plan their payments carefully:

• Scope Awareness: Ensure you understand that other customs tariffs and regulatory duties may still require upfront clearance depending on the final customs assessment notice.
• Calendar Deadlines: Registering a device earlier in the fiscal year (e.g., July to November) provides 8 to 12 monthly instalments, whereas registering later in the spring compresses the tax into only 2 to 4 larger payments.
• Early Settlement Permitted: Applicants have the legal right to pay individual instalments or the entire remaining balance ahead of schedule without incurring penalties.