ISLAMABAD

The Ministry of Information Technology and Telecommunication (MoITT) has proposed significant tax relief for mobile users in the upcoming federal budget, recommending a gradual reduction in both advance income tax and general sales tax on telecom services to make digital connectivity more affordable.

According to official sources, the ministry has submitted a set of key budget proposals to the Ministry of Finance aimed at accelerating the growth of Pakistan’s telecom sector and expanding digital access across the country.

Among the recommendations is a phased reduction in the current 15 percent advance tax on mobile usage and the 19.5 percent General Sales Tax (GST) imposed on telecom services.

Officials said the ministry has also proposed the introduction of a uniform taxation regime for telecom services across all provinces to simplify compliance and create a more predictable business environment for operators.

In a bid to strengthen digital infrastructure, the ministry has recommended lowering duties on broadband equipment and telecom infrastructure imports, arguing that reduced costs would help improve network expansion and service quality.

The proposals further call for greater private-sector participation in new telecom and digital infrastructure projects, with officials advocating a shift away from reliance on public funding toward investment-driven growth.

“Expanding digital access and connectivity remains the central objective of these budget recommendations,” ministry officials said.

According to sources, the ministry believes that reducing the tax burden on consumers and telecom operators would support the government’s Digital Pakistan vision by increasing internet adoption, encouraging investment and improving access to affordable digital services.

The recommendations come as Pakistan prepares for next-generation technologies and seeks to expand broadband penetration, strengthen digital infrastructure and accelerate the country’s transition toward a digitally connected economy.