The Ministry of Information Technology (IT) has proposed to reduce advance tax and general sales tax on mobile phone users for the budget 2026-27.
The purpose of the proposal is to support the telecom sector and give relief to the public. The proposal has been sent to the Ministry of Finance.
Will phones get cheaper in Budget 2026?
Officials from the IT Ministry said that the government should reduce the current 15 per cent advance tax and 19.5 per cent GST in a phased manner.
They said that this will help make mobile and internet services more affordable for common people. Reports say that the main goal is to increase digital access across the country.
The ministry has also suggested lowering duties on broadband equipment and related infrastructure.
According to the reports, the officials believe that this change will help telecom companies expand their networks and improve service quality.
In addition to this, the proposal encourages more private sector investment in telecom projects. The move is ecpected is to reduce dependence on government funds and support the growth of the digital economy.
The telecom sector has already demanded tax relief in the Budget 2026-27. They said that this is important for improving digital connectivity and supporting the vision of a Digital Pakistan.
Read more: Budget 2026-27: are smartphone prices reducing in Pakistan
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“We are consulting our coalition partners and will take them into confidence regarding the reforms and policy measures being considered for the new budget,” he said.
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