Telcos Welcome New Budget But Ask Govt to Cut Mobile Taxes

The Telecom Operators’ Association (TOA) has lauded several digital-economy initiatives in Pakistan's Federal Budget 2026-27, including reduced customs duties on mobile handset raw materials and rationalization of the super tax, expecting these to boost smartphone affordability and investment. However, TOA has strongly urged the government to decrease advance and withholding taxes on mobile services, arguing the current structure burdens consumers, especially since most mobile users are not active taxpayers and cannot recover these deductions. The association also advocated for lower duties on optical fiber infrastructure and broader reforms to enhance tax certainty and ease of doing business, emphasizing the critical role of mobile connectivity in Pakistan's digital economy and overall development.