Mobile Users May Get Big Tax Cut in New Budget

ISLAMABAD: The Ministry of Information Technology has proposed a significant reduction in taxes imposed on mobile phone users in the budget for the next financial year to develop the telecom sector in the country and provide relief to users.

These recommendations have been formally sent to the Ministry of Finance.

IT Ministry officials said that the government should reduce the current 15 percent advance tax and 19.5 percent general sales tax imposed on mobile users in a phased manner so that mobile and internet services can be made accessible to the common man.

The main objective of these recommendations is to increase digital inclusion across the country and enable wider access to communication services.

In the budget proposals, the ministry has also recommended reducing 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 quality of service for users.

In addition, the proposals emphasize increasing private sector investment in new telecommunications projects.

The authorities have recommended that more opportunities be created for private investors while reducing dependence on government funds to accelerate the digital economy.

It should be noted that the telecom sector had already demanded tax relief in the Budget 2026-27 to promote digital connectivity in the country and fulfill the ‘Digital Pakistan Vision’.