Heavy Taxes on Mobile Sector Declared Major Obstacle to Digital Growth and Economic Expansion

(Digital Ittila) Islamabad: Frontier Economics, a global economic research institution, has termed the heavy taxes imposed on the mobile sector in Pakistan as a major obstacle to digital growth, internet accessibility, and economic expansion. Recommending a reduction in the aggregate sales and turnover tax on mobile services from 37% to 17%, Frontier Economics stated that Pakistan ranks among the countries with the highest taxes on mobile services in the world. The global economic research institute released its latest report regarding taxes levied on Pakistan's mobile sector. According to the report, the cumulative sales and turnover tax rate on mobile services in Pakistan stands at 37%, which includes 19.5% General Sales Tax (GST), 15% Advance Income Tax collected from consumers, and a 2.5% regulatory duty. While Frontier Economics recommended slashing this 37% cumulative tax to 17%, a 29% corporate tax along with a 10% super tax is also imposed on the profits of mobile companies. The report concluded that the heavy taxes levied on Pakistan's mobile sector present a significant hurdle to digital advancement, internet penetration, and overall economic growth.