Ministry Suggests Reducing Taxes on Mobile Phones and Telecom Sector

The Ministry of Information Technology and Telecommunication has proposed the government to abolish regulatory duty on imports of telecom equipment, a tax credit for fresh IT graduates, simplification of taxes on the sector as well as a reduction in taxes on mobile phones aimed at ease of doing business in the country.

Official sources told ProPakistani that the top officials of the IT Ministry and Federal Board of Revenue (FBR) held a meeting where the proposals were tabled.

Sources further said that the Ministry has tabulated the proposals into priority one and priority two to facilitate the sector and also not to affect revenue generation measures.

In priority one, the Ministry has proposed to abolish regulatory duty on imports of telecom equipment. Further, a tax credit has been proposed in the same category for fresh IT graduates. In the same category, the ministry has proposed simplification of tax structure for the sector, which is considered a major bottleneck to the growth of the industry.

However, in category two the Ministry has proposed reducing taxes on mobile handsets for achieving the digital vision.

The Senate Standing Committee has also proposed a reduction in taxes on mobile phones. The committee was informed that there is a tax of Rs. 80,000 on a mobile phone worth $500. The committee also proposed a tax exemption on laptops. According to Secretary IT, the FBR has been asked to reduce the tax on imported phones.


  • Govt is in dire need for tax revenue. They would rather subsidize imported fossil fuels and tax ICT goods and services. That shows their priorities.

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