Pakistan Has One of the World’s Highest Mobile Phone Taxes: Report

Pakistan’s mobile users face one of the heaviest telecom tax burdens globally, with total effective taxes reaching 37 percent, according to a new report by VEON.

The report says mobile services are hit by multiple layers of taxation, including 19.5 percent sales tax, 15 percent advance income tax, and a 2.5 percent regulatory duty.

In addition, handset import taxes range between 18 percent and 25 percent, while broader import duties can go as high as 46 percent, alongside other corporate and regulatory charges.

This creates a “tax trap,” where high prices discourage mobile usage and limit digital expansion, ultimately shrinking the future tax base.

The report argues that excessive sector-specific taxation raises costs for consumers and slows access to digital services such as banking, education, healthcare, and payments.

VEON recommends shifting toward a more balanced tax system aligned with general economy-wide policies to support growth and investment.