Islamabad: The Ministry of Information Technology has submitted proposals to the Ministry of Finance for the upcoming fiscal year’s budget, recommending a significant reduction in taxes levied on mobile phone users to grant consumer relief and boost the telecom sector.
According to Ministry of IT officials, the government needs to gradually reduce the current 15% advance tax and 19.5% General Sales Tax (GST) on mobile users.
This reduction aims to make mobile and internet services more affordable for the general public, thereby increasing digital inclusion and ensuring wider access to communication services across the country.
In the budget proposals, the ministry has also recommended lowering duties on broadband equipment and related infrastructure.
Officials believe that reducing the cost of digital infrastructure will help telecom companies expand their networks more efficiently and improve the overall quality of service for consumers.
Additionally, the proposals emphasize increasing private sector investment in new telecommunication projects.
Officials have recommended creating more opportunities for private investors to decrease reliance on government funds, which will accelerate the growth of the digital economy.
The telecom sector has already requested tax relief in the 2026-27 budget to promote digital connectivity and fulfill the ‘Digital Pakistan Vision’.
