GSMA calls for reduced taxes on smartphones, telecom services

'Pakistan can learn from India, where lowering telecom taxes played a pivotal role in driving digital growth'

ISLAMABAD:

Jeanette Whyte, Head of Public Policy, Asia Pacific Telecommunications Corp (APAC) at GSMA, has called for a reduction in taxes on smartphones and telecom services, describing them as crucial to the growth of a strong digital economy.

In an interview, Whyte said that high taxation on these crucial items hampers connectivity and accessibility, which are vital for improving Pakistan's economic landscape, particularly as the country emerges as a hub for freelancers.

Pakistan can learn from regional successes like India, where lowering telecom taxes played a pivotal role in driving digital growth, she noted. Adding that denominating spectrum payments in local currency would provide greater certainty for operators, encourage investment, boost competition, and improve infrastructure.

"We highlight the need for tax breaks and outline a strategic approach to spectrum auctions, emphasising the necessity of clear frameworks, detailed roadmaps, and a rational approach to pricing," she said.

Speaking about the importance of the 'Smartphone for All' policy, Whyte explained that it plays a key role in bridging the digital divide and economically empowering individuals.

In emerging markets like Pakistan, affordable smartphones are essential for promoting broader digital participation, she said. By ensuring access to smartphones for everyone, the policy enables greater involvement in the digital economy, fostering innovation, entrepreneurship, and access to critical services such as education, healthcare, and financial inclusion.

For Pakistan to adopt this policy successfully, the government should focus on reducing taxes and import duties on smartphones to lower costs, while also exploring subsidies and financing options to make devices more accessible to low-income populations.

Additionally, fostering public-private partnerships can support the rollout of affordable devices, and implementing digital literacy programmes will ensure users can fully leverage their smartphones to access online services and opportunities, she added.