Budget 2026-27: MoITT Proposes Tax Relief for Mobile Users, Recommends Cuts in GST and Advance Tax

The Ministry of Information Technology and Telecommunication (MoITT) has proposed a series of tax relief measures for mobile users and the telecom sector in its budget recommendations for the upcoming fiscal year.

According to officials, the ministry has forwarded key proposals to the Ministry of Finance, including recommendations to gradually reduce the 15% advance income tax on mobile usage and the 19.5% General Sales Tax (GST) currently imposed on telecom services.

The proposed tax relief package is part of a wider effort to make digital services more affordable for consumers while encouraging greater adoption of mobile and broadband connectivity across the country.

Officials said the ministry has also recommended the implementation of a uniform taxation framework for telecom services across all provinces, arguing that a harmonized tax structure would simplify compliance and support sector growth.

In addition to consumer-focused relief measures, the ministry has proposed reducing duties on broadband equipment and telecom infrastructure imports to lower deployment costs and accelerate network expansion.

The recommendations also call for greater private-sector participation in telecom development projects, with officials suggesting that increased private investment could help modernize digital infrastructure while reducing reliance on public funding.

The ministry has further advised creating an enabling environment for new telecom investments, particularly in broadband expansion and digital infrastructure projects aimed at improving service quality and coverage.

According to officials, the proposed measures are intended to increase digital access, strengthen connectivity, and support the government’s efforts to expand internet penetration nationwide.

The recommendations come as Pakistan continues to pursue digital transformation initiatives, improve broadband availability and prepare for next-generation telecom services.

If approved as part of the federal budget, the proposed tax reductions could provide relief to millions of mobile users while potentially encouraging further investment in Pakistan’s telecom and digital economy sectors.

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