Relief for mobile users tax reduction recommended

ISLAMABAD: The Ministry of Information Technology has prepared several proposals to provide relief to mobile users and the telecom sector for the federal budget 2026-27.

The ministry has recommended a reduction in the 15 percent advance tax imposed on mobile cards and balance load and the 19.5 percent general sales tax imposed on mobile services. According to the ministry, the reduction in these taxes will enable users to get more talk time and internet data while also increasing the use of digital facilities.

The budget proposals also include a recommendation to reduce duty on the import of modern equipment used in broadband and internet services to provide high-speed internet across the country.

In addition, special incentives have been proposed to reduce the cost of installing fiber optic networks and telecom towers so that cheap and quality internet can be provided to remote areas. The IT Ministry has also emphasized on increasing private sector investment.

According to the proposals, investors in new telecom and digital infrastructure projects should be provided with tax incentives and other facilities so that the digital economy and technology sector in the country can be further promoted.