Former Minister of State Calls For Tax Cuts in Upcoming Budget for IT & Telecom Industry

Former Minister of State and Chairman of the Board of Investment (BOI), Mohammad Azfar Ahsan, emphasizes the crucial role of Pakistan’s telecommunication and cellular industry in the country’s economic development. In a statement, Azfar Ahsan said that Pakistan’s telecommunication industry is one of the most tax-paying industries in the world, paying 19.5 percent GST, 15 percent additional withholding tax, and 34 percent corporate tax. However, excessive taxation has hindered the sector’s performance, impacting the pace of economic growth. Therefore, it is important to consider the suggestions of stakeholders and lift the excessive amount of taxes imposed on the telecom sector.

Ahsan further asserts that heavy taxation not only affects the telecommunication sector but also hampers the development of digital technology, information technology (IT), and related industries. With future job opportunities expected to arise in technological fields like artificial intelligence (AI) and machine learning (ML), the telecom sector plays a vital role in providing effective infrastructure. Additionally, the sector plays a significant part in Pakistan’s IT exports, with the country being the 4th largest in the world in terms of IT freelancing, generating $2 billion annually.

Highlighting Pakistan’s youthful population, Ahsan points out that nearly 60% of the country’s population consists of young individuals aged between 15 and 29 years. This demographic represents valuable human and intellectual capital. The presence of numerous IT companies, call centers, English-speaking IT professionals, software technology parks, and a substantial number of IT graduates and engineers contribute significantly to the country’s economy. Ahsan questions the need for external assistance when Pakistan alone exports $2 billion worth of IT services annually.

Recognizing the five key roles of the telecommunication industry in Pakistan, Ahsan emphasizes its facilitation of the population, creation of employment opportunities, and support for business development. He urges the government to provide a long-term policy framework and facilitate investors in the IT sector, ensuring widespread access to 4G connectivity. Ahsan stresses that sustaining and developing the telecom sector through a supportive government approach will have a positive impact on the country’s economy.

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