ISLAMABAD (Kashmir English): The Ministry of Information Technology has proposed a significant reduction in taxes imposed on mobile phone users as part of its recommendations for the federal budget 2026-27, aiming to promote digital inclusion and expand access to communication services across Pakistan.
According to the sources, the ministry has formally submitted its proposals to the Ministry of Finance, recommending a phased reduction in the current 15 percent advance tax and 19.5 percent General Sales Tax (GST) charged on mobile services.
Officials said the move is intended to make mobile and internet services more affordable for the public while supporting the government’s broader digital transformation agenda.
In the budget proposals, the ministry has also recommended reducing duties on broadband equipment and related infrastructure.
Officials believe that reducing the cost of digital infrastructure will help telecom companies expand their networks more efficiently and improve the quality of service for users.
In addition, the proposals emphasize increasing private sector investment in new telecommunications projects.
The authorities have recommended that more opportunities be created for private investors while reducing dependence on government funds to accelerate the digital economy.
It should be noted that the telecom sector had already demanded tax relief in the Budget 2026-27 to promote digital connectivity in the country and fulfill the ‘Digital Pakistan Vision’.
Budget to be presented on June 10
Parliamentary Affairs Minister, Dr Tariq Fazal Chaudhry, has said that the presentation of the federal budget for the next fiscal year (FY2026-27) has been pushed to June 10.
His clarification comes after the country’s media outlets reported on Tuesday that the budget would not be presented on June 5 (Friday), for which sessions of both houses of Parliament were summoned.
Giving the reason for postponing the budget presentation during a TV programme, Chaudhry said, “The initial proposal for the budget was June 5, [but] now, the budget will be released on June 10, God willing.”
He confirmed that the new date for the budget announcement was June 10 (Wednesday).
Elaborating further on reasons for the delay, Chaudhry stressed that one of the two main steps in the budget process was “convincing the allies” in the ruling coalition.
However, he played down the impression of any differences between the PML-N and the PPP, terming the latter’s chairman Bilawal Bhutto-Zardari a “very good ally of ours”.
