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Wednesday, February 5, 2025

GSMA urges lower taxes on Smartphones and Telecom services

Jeanette Whyte, Head of Public Policy for Asia Pacific at GSMA, has called for lower taxes on smartphones and telecom services, emphasizing their importance in building a strong digital economy.

In an interview, Whyte pointed out that high taxes on these essential tools limit connectivity and accessibility, which are crucial for improving Pakistan’s economic prospects, especially as it becomes a growing hub for freelancers.

Citing India’s success, she explained that reducing telecom taxes there helped drive digital growth. Whyte also suggested that if Pakistan denominates spectrum payments in local currency, it would provide operators with more financial stability, encourage investment, enhance competition, and improve infrastructure.

She further stressed the need for tax breaks and a well-thought-out strategy for spectrum auctions, calling for clear frameworks, detailed roadmaps, and reasonable pricing.

Discussing the ‘Smartphone for All’ policy, Whyte said it’s vital for closing the digital divide and economically empowering people. In countries like Pakistan, affordable smartphones are key to expanding digital participation, sparking innovation, and providing access to essential services like education, healthcare, and financial inclusion.

To implement this policy effectively, Whyte urged the Pakistani government to reduce taxes and import duties on smartphones, making them more affordable. She also encouraged exploring subsidies and financing options for low-income communities, promoting public-private partnerships, and launching digital literacy programs to help people fully benefit from the opportunities smartphones offer.

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