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Ministry Proposed Reducing Taxes on Mobile Phones and Telecom Sector

Ministry Proposed Reducing Taxes on Mobile Phones and Telecom Sector


The Ministry of Information Technology and Telecommunication has proposed that the government eliminate regulatory duties on telecom equipment imports, provide a tax credit for new IT graduates, simplify taxation in the sector, and reduce taxes on mobile phones in order to make doing business in the country easier.

Official sources told that the recommendations were discussed during a meeting between top officials from the IT Ministry and the Federal Board of Revenue (FBR). According to sources, the Ministry has divided the recommendations into priority one and priority two in order to help the industry and avoid affecting income generation methods.

The Ministry has suggested eliminating the regulatory tariff on telecom equipment imports as a top priority. A tax credit for new IT graduates has also been proposed in the same category. In the same vein, the government has recommended simplifying the tax structure for the sector, which is seen as a major roadblock to its expansion.
However, in order to achieve the digital goal, the Ministry has proposed lowering taxes on mobile handsets in category two.

A cut in mobile phone taxation has also been proposed by the Senate Standing Committee. The committee was informed that a mobile phone worth $500 is subject to a tax of Rs. 80,000. A tax exemption for laptops was also advocated by the committee. The FBR has been urged to lower the tax on imported phones, according to Secretary IT.

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