The GSMA telecom tax cuts study is examining whether reducing sector-specific taxes could accelerate broadband adoption, expand the digital economy and ultimately generate higher government revenue. The assessment aims to provide policymakers with evidence on the long-term economic benefits of lowering taxes on the telecommunications sector.
GSMA Evaluates Tax Reform for Digital Growth
Speaking during the Digital Pakistan 2030: The Next Phase of Digital Transformation media roundtable, Julian Gorman, Head of Asia Pacific at GSMA, and Saira Faisal, Country Lead for Digital Transformation at GSMA Pakistan, outlined the organisation’s ongoing research into telecom taxation.
The GSMA telecom tax cuts assessment is analysing how changes to the current tax framework could improve smartphone affordability and encourage wider digital participation. According to the association, making entry-level smartphones more affordable is a key step towards narrowing the digital usage gap and increasing broadband connectivity.
Lower Taxes Could Expand Broadband Adoption
The study is evaluating whether reduced telecom taxes can offset short-term government revenue losses by driving higher smartphone ownership, broader broadband adoption and a larger overall tax base.
GSMA is also assessing which sector-specific taxes would have the greatest impact if reduced and how quickly increased digital adoption and device sales could compensate for lower tax collections.
The findings are intended to help governments develop evidence-based taxation policies while balancing fiscal priorities and commitments under International Monetary Fund (IMF) programmes.
Connectivity Linked to Economic Growth
According to long-standing GSMA research, a 10% increase in broadband adoption can contribute between 1% and 2% growth in gross domestic product (GDP), highlighting the broader economic benefits of improved digital connectivity.
The organisation also recognised ongoing digital transformation initiatives led by federal and provincial governments, noting that these programmes are encouraging greater smartphone adoption and wider use of digital services.
Through its GSMA telecom tax cuts assessment, the association aims to provide policymakers with practical data to support decisions on taxation, digital infrastructure investment and long-term economic development.