Mobile tax cuts and cheaper internet proposed in Budget 2026-27

The Ministry of Information Technology has suggested major tax cuts for mobile users in Budget 2026-27. The proposal includes reducing both the 15 percent advance tax and the 19.5 percent General Sales Tax (GST).

These recommendations have been sent to the Ministry of Finance for review. The move is part of a wider plan to strengthen Pakistan’s telecom and digital sector.

Officials from the IT Ministry say the current tax burden on telecom consumers should be reduced step by step. They believe this will make mobile and internet services more affordable for the public.

The aim of these proposals is to improve digital access across the country. Better affordability is expected to increase internet usage and support digital inclusion.

The ministry has also recommended lowering duties on broadband equipment and telecom infrastructure. Officials say this will help companies expand networks faster and improve service quality.

They further suggested encouraging more private-sector investment in telecom projects. According to officials, this will reduce pressure on government funding and speed up digital development.

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The overall goal of these proposals is to support the Digital Pakistan vision. The government wants to expand connectivity and strengthen the country’s digital economy.

Earlier, telecom companies had also demanded tax relief in the upcoming budget. They argued that lower taxes would help improve investment, growth, and public access to digital services.

The proposal shows a clear push toward making mobile and internet services cheaper. However, approval will depend on the finance ministry and overall budget strategy.

If accepted, users may see some relief in telecom costs. But final results will depend on how much tax reduction is actually approved in the budget.