Web Desk: Pakistan’s Ministry of Information Technology and Telecommunication has proposed significant reductions in taxes levied on mobile phone users for the upcoming federal budget to spur growth in the telecom sector and provide financial relief to consumers.
The ministry has formally submitted these recommendations to the Ministry of Finance for integration into the fiscal year budget.
Ministry officials stated that the government should implement a phased reduction in the current 15 percent advance tax and 19.5 percent General Sales Tax (GST) imposed on mobile phone users. The primary objective of these cuts is to make essential mobile and internet services more affordable for the general public, thereby accelerating nationwide digital inclusion and broadening access to communication services.
In addition to consumer tax relief, the budget proposals recommend lowering duties on broadband equipment and related infrastructure.
Officials believe that reducing the cost of digital infrastructure will enable telecom companies to expand their networks more effectively and significantly improve the quality of service for subscribers.
Furthermore, the proposals emphasize the need to attract more private sector investment into new telecommunication projects.
To accelerate the growth of the digital economy, officials recommended creating lucrative opportunities for private investors, which would subsequently reduce the telecom sector’s reliance on government funding.
The telecom industry had previously demanded tax relief for the fiscal budget to foster digital connectivity across the country and fulfill the overarching ‘Digital Pakistan Vision.’
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