Mobile phone users in Pakistan continue to face a heavy tax burden on prepaid services, with the combined tax rate reaching 34.5%, significantly reducing the value of mobile top-ups.
According to available figures, when a customer loads PKR100 in prepaid mobile credit, an advance income tax of 15% is deducted first, amounting to PKR13.04, leaving a balance of PKR86.96.
A 19.5% sales tax is then applied to the remaining balance, resulting in a further deduction of PKR14.19. As a result, the customer is left with only PKR72.77 in usable mobile credit.
In total, PKR27.23 is deducted in taxes from every PKR100 recharge.
Representatives of the telecommunications sector and consumer groups argue that reducing taxes on mobile services would improve access to digital services, mobile internet, online education, e-commerce and other essential online platforms.
For now, prepaid mobile users continue to pay substantial taxes on every top-up, increasing the cost of mobile connectivity, particularly for low-income consumers.
