IT Ministry Proposes Reduction in Mobile Taxes for FY 2026–27 Budget
The Ministry of Information Technology has proposed tax relief measures for mobile phone users in the upcoming federal budget for fiscal year 2026–27.
The proposals include a reduction in the 15% advance tax on mobile usage as well as a possible cut in the 19.5% General Sales Tax (GST) currently applied to telecom services.
Focus on Affordable Digital Access
According to ministry officials, the aim of the recommendations is to make mobile and internet services more affordable for the public and to expand digital access across the country.
The proposals have been forwarded to the Ministry of Finance for consideration as part of broader budget discussions.
Support for Telecom Infrastructure
The ministry has also suggested lowering duties on broadband equipment and telecom infrastructure to help improve network expansion and service quality.
Officials believe that reducing operational costs in the sector will encourage companies to invest more in expanding coverage, especially in underserved areas.
Encouraging Private Investment
The recommendations also emphasize increasing private-sector participation in telecommunications projects. Officials say this will help reduce reliance on public funding and speed up the development of digital infrastructure.
Digital Pakistan Vision
The overall objective of these proposals is to support the government’s Digital Pakistan initiative by improving connectivity, encouraging investment, and making digital services more accessible to citizens.
The telecom sector has also called for tax relief in the upcoming budget to support industry growth and wider internet penetration.
