Pakistan telecom sector pushes for tax cuts on 5G devices and mobile services

Pakistan’s telecom industry has submitted proposals to the federal government calling for the removal of customs duties on 5G and fixed‑line equipment, a reduction of the advance income tax on telecom services from 15% to 8%, and a sharp cut in import taxes on optical‑fiber cable from roughly 67% to 5%. Industry representatives say high taxes are raising deployment costs and limiting the rollout of 5G, and they estimate that duty rationalisation could unlock about Rs 12 billion in additional investment for network expansion and digital infrastructure.

At the same time, government officials are reviewing a separate set of reforms aimed at lowering PTA mobile‑phone taxes for overseas Pakistanis. Senators highlighted the heavy burden on diaspora visitors who bring smartphones into the country and face registration fees that can run into tens of thousands of rupees, especially for premium models. The proposed relief is part of broader tax‑reform discussions for the upcoming Budget 2026‑27 and is intended to encourage legal device registration, improve public satisfaction, and support the Pakistani diaspora’s economic contribution.