Mobile users in Pakistan face 37pc telecom taxes, report says

Pakistan’s mobile users face one of the world’s highest telecom tax burdens, with total effective taxes reaching 37 per cent, according to a new report released by VEON.

The report stated that mobile services in Pakistan are subject to several layers of taxation, including a 19.5pc sales tax, 15pc advance income tax and a 2.5pc regulatory duty.

It added that taxes on imported mobile handsets range from 18pc to 25pc, while broader import duties can rise to as high as 46pc, alongside additional corporate and regulatory charges.

According to the report, the high tax structure has created what it described as a “tax trap”, where rising costs discourage mobile usage and slow digital expansion, ultimately limiting the future tax base.

The report said excessive taxation in the telecom sector increases costs for consumers and affects access to digital services, including online banking, education, healthcare and digital payments.

VEON recommended adopting a more balanced tax framework aligned with broader economy-wide policies to encourage investment and support digital growth.

The report also emphasised that lower taxation could help improve digital inclusion and expand access to mobile connectivity across the country.