A new report prepared for VEON highlights that mobile users in Pakistan are subject to one of the highest telecom tax burdens in the world, with the total effective tax load reaching around 37% on mobile services.

The study explains that mobile consumption is taxed through multiple layers, including a 19.5% sales tax, a 15% advance income tax, and a 2.5% regulatory duty. It adds that handset imports are also heavily taxed, with duties ranging between 18% and 25%, while overall import levies in some cases can climb as high as 46%.

According to the report, this complex and heavy taxation structure significantly raises the cost of mobile services for consumers and discourages wider adoption and investment in the sector.

Researchers warn that the current system creates a structural “tax trap,” where high prices suppress usage and limit digital expansion, ultimately restricting the growth of the overall tax base over time.

The study argues that expensive mobile connectivity also slows access to essential digital services such as banking, education, healthcare, and government platforms.

It recommends reducing sector-specific taxes and shifting toward a more balanced, economy-wide tax approach to support broader digital adoption, investment, and long-term economic growth.