Pakistan’s mobile operators have approached the country’s government with proposals calling for the elimination of activation tax and reduction in general sales tax from 21 per cent to 16 per cent. The operators claim that the reduction in taxes would attract higher levels of foreign direct investment in the telecom sector.

The PTA has taken the proposals to the Federal Board of Revenue, calling specifically for a cut in general sales tax. The board is expected to assess the request in its next finance bill.