Islamabad – Pakistan continues to tax broadband services as if they were a luxury item, a policy approach that experts warn is counterproductive in an era where internet access has become the backbone of the 21st-century economy. Rather than facilitating growth, the heavy taxation on connectivity risks slowing the nation’s digital transformation and widening the digital divide.
In today’s world, broadband is no longer an optional convenience but a fundamental enabler of education, healthcare, commerce, governance, and communication. From online classrooms and telemedicine to e-commerce platforms and remote work, reliable internet connectivity is essential for productivity and social inclusion. Yet, by taxing internet services heavily, the state effectively treats them as discretionary rather than indispensable, raising costs for ordinary citizens and businesses alike.
The impact of such taxation is particularly acute on students, small businesses, freelancers, and startups, all of whom rely on affordable internet access to participate in the modern economy. Analysts warn that maintaining high broadband taxes undermines efforts to build a digitally skilled workforce and inhibits innovation at a time when Pakistan must compete in the global technology landscape.
Many countries have recognised the importance of affordable internet and moved to reduce taxes on broadband, expand coverage, and incentivise private investment in digital infrastructure. Treating broadband as essential infrastructure — akin to electricity, water, or transportation — can accelerate economic activity, enhance service delivery, and ensure wider participation in the digital economy.
In Pakistan, heavy taxation on broadband also risks slowing growth in the IT sector, which has been a significant driver of exports and employment. Policymakers face a critical choice: continue taxing connectivity as a luxury, or recognise it as a vital tool for economic resilience, social inclusion, and long-term national development. Experts argue that reframing broadband as a necessity rather than a privilege could be transformative for Pakistan’s digital economy and its citizens.
This story has been reported by PakTribune. All rights reserved.