New Taxes on Telecom Sector to Debilitate Pakistan's Growing IT Sector - PhoneWorld Magazine

The Federal government of Pakistan presented the fiscal budget 2022-23 on Friday and imposed a number of new taxes for stabilizing the economy. The government entails that the new budget is focusing on consolidation of the economy (to save the country from economic turmoil as recently witnessed in Srilanka) and to safeguard the most vulnerable segments of the society including lower-middle and middle-income classes. However, given the inflationary measures and imposition of taxes on fuel, electricity, telecom sector, etc, it seems like the budget is more prone to meet the demands of IMF rather than safeguarding the interest of citizens.
Simultaneously, the new budget imposes many new levies and taxes on the telecom sector and mobile phone industry, which are anticipated to stifle several development initiatives related to telephony, internet services, and mobile phone manufacturing.
Some of the new taxes imposed on the telecom sector in the new budget are mentioned below:
Increase in Regulatory Duty on optical fiber import:
The regulatory duty (RD) on optical fiber cable imports was hiked from 10% to 20% in the recently announced federal budget, with the main aim of promoting local manufacturing of the high-tech cables.
Increase in Taxes on CKD, SKD, and CBU Devices:
The government also imposed stringent levies on completely knocked down (CKD) devices, Semi Knocked Down (SKD) devices, and Completely Built Units (CBU). The sales tax on the import of completely knocked down...



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