The GSMA has urged the Pakistani government to lower excessive taxes on mobile services ahead of the national budget. According to GSMA’s pre-budget report, mobile users in Pakistan face the highest tax burden among nine peer countries—paying 33% in taxes on mobile recharges, including 18% sales tax and 15% advance income tax.
The report highlights that Pakistan’s tax rate exceeds that of Nepal (26%), Sri Lanka (23%), and India (18%), among others. GSMA warned that these taxes hinder both consumer access and telecom sector investment.
To ease the burden, GSMA recommended reducing advance income tax on recharges from 15% to 12.5% and lowering sales tax from 18% to 16%. It also advised eliminating import duties on mobile phones, cutting operator income tax from 5.5% to 1%, and removing the 4% minimum tax on telecom companies.
GSMA called for telecom license and spectrum renewal fees to be exempt from advance tax, and for the sector to receive full withholding tax exemptions like the banking and oil industries. Additionally, it proposed scrapping the 75% advance tax on non-filers.
