Excessive Tax on Telecom Threatens Pakistan’s Digital Growth, Warns Jazz CEO

Aamir Ibrahim, CEO of Jazz and Chairman of the Telecom Operators Association, has raised strong concerns over the proposed excessive taxation on the telecom sector. He said that overtaxing telecom not only affects consumers’ affordability but also damages investor confidence in a sector that demands constant innovation and infrastructure development.

In a statement to the media, Ibrahim emphasized that taxing telecom heavily is economically harmful and socially backward. “Telecom is the digital backbone of every sector. It should be treated as a strategic asset, not just a revenue source,” he said. He pointed out that connectivity today is as vital as roads and power grids. Telecom supports vital services such as e-commerce, mobile banking, online education, telehealth, and public service delivery.

Ibrahim warned that Pakistan’s tax burden falls mostly on a small group of compliant individuals and industries. Instead of repeatedly taxing these sectors, the government should broaden the tax base and bring more people into the formal economy. “Adding more taxes on a key sector like telecom discourages investment, slows innovation, and harms long-term growth,” he said.

He highlighted the social impact of over-taxation by giving examples of people who rely on digital access daily. “Whether it’s a student in rural Balochistan attending virtual classes or a woman entrepreneur growing her business through mobile payments, telecom is a lifeline for millions,” Ibrahim said. He urged policymakers to adopt a forward-looking fiscal policy that reduces barriers to connectivity and promotes digital inclusion for all Pakistanis.

Ibrahim concluded that telecom is not a luxury but a critical utility, similar to electricity and clean water. Overburdening it with taxes is counterproductive, he claimed. Therefore, a balanced tax regime, alongside efforts to document the informal economy, would generate sustainable revenue without hindering the digital ecosystem’s growth.

The Jazz CEO’s warning highlights the urgent need to rethink fiscal policies to support Pakistan’s digital future rather than hinder it.

Also read:

Jazz and Qvantel Expand Strategic Partnership with New Service Centers in Islamabad and Lahore