<ul><li>Telecom sector in Pakistan has proposed tax relief and regulatory reforms ahead of the federal budget 2025–26 to support growth and expand services nationwide.</li><li>Key demands include reducing sales tax on telecom services, reinstating advance tax structure for mobile users, and abolishing the 10% advance income tax on auction or renewal of telecom licenses.</li><li>Operators are concerned about withholding tax complexities on transactions like electricity bills, proposing exemptions from deduction/collection of withholding taxes for telecom operators.</li><li>Proposals also aim to support long-term investments by increasing carry-forward period for minimum tax credit, removing regulatory duties on imported telecom power equipment, and excluding providers from retail price list.</li></ul>

Telecom Sector Seeks Tax Relief in Budget 2025–26

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