Govt proposes tax relief on mobile users in upcoming budget

The telecom sector had already called for tax relief in Budget 2026–27.

ISLAMABAD: The Ministry of Information Technology has proposed significant reductions in advance tax and sales tax on mobile users in the upcoming federal budget, aiming to support the telecom sector and improve digital access across the country.

According to details, the ministry has submitted formal recommendations to the Ministry of Finance suggesting a phased reduction in the existing 15% advance tax and 19.5% general sales tax on mobile and internet services.

Officials said the proposed measures are designed to make telecom services more affordable for the general public and to promote broader digital inclusion nationwide.

The proposals also include a reduction in duties on broadband equipment and related infrastructure to lower operational costs for telecom operators.

Authorities believe that reducing infrastructure costs will enable telecom companies to expand their networks more efficiently while improving service quality for users.

The ministry further recommended increasing private sector investment in new telecommunications projects, stressing reduced reliance on public funding to accelerate growth in the digital economy.

Officials noted that the telecom sector had already called for tax relief in Budget 2026–27 to advance Pakistan’s “Digital Pakistan” vision and improve nationwide connectivity.