Mobile taxes Pakistan budget proposals target advance tax and GST reductions as the Ministry of IT pushes for wider digital access and telecom investment

Pakistan’s Ministry of IT wants to make mobile phones and internet cheaper. It submitted proposals to the Finance Ministry recommending reductions in two key taxes. The first is the 15 percent advance tax on mobile services. The second is the 19.5 percent GST. The mobile taxes Pakistan budget recommendations aim to support telecom growth and expand digital access. Moreover, the telecom sector had already been pushing for this exact relief ahead of the FY2026-27 budget.

The ministry’s argument is simple. Current tax levels make mobile and internet services unaffordable for many Pakistanis. Reducing those taxes would directly increase digital inclusion. Furthermore, wider access to communication services supports the government’s Digital Pakistan vision. Therefore, the proposal goes beyond cheaper bills. It is about connecting millions who currently cannot afford to stay online.

Broadband equipment and infrastructure also feature in the recommendations. The ministry wants lower duties on these items. Furthermore, reduced infrastructure costs would help telecom companies expand networks more efficiently. Better networks, in turn, improve service quality for consumers everywhere.

The proposals also call for greater private-sector involvement in new telecom projects. The ministry wants more opportunities for private investors. Furthermore, it wants to reduce dependence on public funds. Therefore, the goal is to accelerate digital economy development without placing the full burden on government budgets.

Pakistan’s telecom sector has long argued that high taxes suppress both usage and investment. Furthermore, the budget presentation on June 10 is fast approaching. Finally, whether the Finance Ministry accepts these recommendations will determine whether Pakistan’s next budget helps or hinders the country’s digital ambitions.