VEON has reported that mobile users in Pakistan are facing very high Phone Taxes. The total effective burden is estimated at around 37 percent.
According to the report, Phone Taxes include multiple layers of charges on telecom services. These create a heavy cost for mobile users across the country.
The breakdown includes a 19.5 percent sales tax on mobile services. It also includes a 15 percent advance income tax. In addition, there is a 2.5 percent regulatory duty.
The report also highlights high taxes on mobile handsets. Import duties on devices range between 18 percent and 25 percent. In some cases, total import charges can reach up to 46 percent.
Other regulatory and corporate charges further increase the overall burden. This combination makes Phone Taxes one of the key cost factors for users in Pakistan.
The report describes the situation as a “tax trap.” It says high costs discourage people from using mobile services more frequently.
Experts warn that rising Phone Taxes can slow digital growth. This may affect access to online banking, education, healthcare, and digital payments.
The report also states that lower usage can reduce future tax collection. If mobile usage drops, the overall tax base may shrink over time.
VEON recommends reforms in the tax structure. It suggests moving toward a more balanced system aligned with general economic policies.
Industry experts believe reducing Phone Taxes could help increase mobile adoption. It may also support expansion of digital services in rural and urban areas.
Pakistan’s telecom sector is important for digital connectivity. However, high taxation remains a major challenge for both users and operators.
Analysts say rationalizing Phone Taxes could improve affordability. It may also encourage more investment in the telecom sector.
The report emphasizes the need for policy adjustments. It argues that sustainable taxation can support both economic growth and digital inclusion.
In other related news also read Tax Investigations in Pakistan: FBR Grants Expanded Authority
Overall, the findings show that Phone Taxes are a major concern in Pakistan’s telecom industry. They directly affect usage, affordability, and long-term digital development.
