The Ministry of Information Technology has proposed tax relief for mobile phone users in the upcoming FY2026-27 budget, recommending cuts in both the 15 percent advance tax and the 19.5 percent General Sales Tax (GST) on telecom services.

The proposals have been submitted to the Ministry of Finance as part of a wider effort to support growth in Pakistan’s telecommunications sector and make mobile and internet services more affordable for consumers.

According to officials in the Ministry of IT, the government should gradually reduce the tax burden on telecom users to promote digital inclusion and expand access to communication services across the country.

The ministry has also recommended reducing duties on broadband equipment and related telecom infrastructure. Officials believe lower costs for digital infrastructure would help telecom operators expand their networks more efficiently and improve the quality of services for users.

In addition to consumer tax relief, the proposals call for greater private-sector participation in new telecommunications projects. Ministry officials have suggested creating more room for private investment while lowering dependence on public funding, with the aim of speeding up the development of the digital economy.

Officials said the broader objective of these budget recommendations is to strengthen digital connectivity and advance the government’s Digital Pakistan agenda.

The telecom sector had earlier sought tax relief in the FY2026-27 budget, urging the government to reduce levies in order to support sector growth, encourage investment, and improve digital access for a larger segment of the population.