Global economic research firm Frontier Economics has termed the heavy taxation on Pakistan’s mobile sector as a major obstacle to digital development, internet access and economic growth.
In its latest report on taxes imposed on the mobile sector in Pakistan, the organisation stated that the overall sales and turnover tax on mobile services stands at 37 per cent. The figure included 19.5 per cent general sales tax, 15 per cent advance income tax collected from consumers, and a 2.5 per cent regulatory duty.
The report further stated that mobile companies are also subject to 29 per cent corporate tax along with an additional 10 per cent super tax on profits.
Frontier Economics recommended that the total sales and turnover tax on mobile services be reduced from 37 per cent to 17 per cent. It added that Pakistan is among the countries imposing the highest taxes on mobile services in the world.
The report stated that excessive taxation on the mobile sector remains a serious barrier to digital expansion, internet accessibility and broader economic growth in the country.
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