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.
More read, Pakistan seeks partners to prepare country’s workforce for an AI-driven future
Earlier, Pakistan government is on the hunt for a training company or consortium to help lead a massive artificial intelligence overhaul, and it has just issued the official Request for Proposal, or RFP, to get the job done.
The solicitation is a core part of the National AI Advancement Initiative, or NAIAI, a strategic push to prepare the country’s workforce for an AI-driven future through upskilling programs, academic partnerships and policy incentives.
Aligned with the Digital Pakistan Vision, the National AI Policy and the U.N. Sustainable Development Goals, NAIAI aims to drive innovation in the public and private sectors, enhance workforce capabilities and establish AI governance in health care, agriculture, education and industry.
