The telecom companies in Pakistan have urged the federal government to implement a major tax cut in the upcoming fiscal budget 2026-27.
The telecom operators have submitted a series of proposals to the government aimed at boosting investment and expanding digital connectivity.
Telecom companies have recommended reducing advance income tax on mobile users from 15% to 8%, while cutting withholding tax from 6% to 4%.
Operators say the measures would lower costs for consumers and encourage greater usage of digital services.
The industry has also called for the extension of turnover tax credit support for telecom companies from two years to five years, arguing that longer-term incentives are needed to sustain investment in network infrastructure.
According to the proposals, customs duties on 5G equipment and fibre-optic cables should be abolished to accelerate the rollout of next-generation telecom services.
Industry representatives estimate that removing the duties could unlock nearly Rs12 billion in additional investment.
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They say lower equipment costs would also help improve internet access in rural and underserved areas.
Telecom operators have further stressed the need to make mobile services more affordable for low-income prepaid users and have asked the government to withdraw powers allowing authorities to reject advance tax estimates submitted by telecom firms.
The sector has appealed for immediate policy action to support the expansion and certification of 4G and 5G networks, warning that rising operational costs are slowing Pakistan’s digital transformation
Industry figures say more than $6.3 billion has been invested in Pakistan’s telecom sector over the past six years, while the industry has contributed over Rs1.9 trillion to the national exchequer.
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