The federal government is considering significant changes to the tax regime for freelancers and salaried employees working in the IT export sector as part of the upcoming Budget 2026-27.
According to sources, authorities are reviewing multiple proposals that could either reduce or increase the tax burden on freelancers and employees of IT exporter companies. Discussions are also underway regarding the introduction of a harmonized tax structure that would place both groups under a unified taxation framework.
The proposed changes are aimed at streamlining tax policies for Pakistan’s growing digital economy while ensuring revenue collection targets are met. However, no final decision has yet been taken on the nature or extent of any tax relief.
Meanwhile, tax relief proposals related to mobile phones appear to be losing momentum and may not be included in the upcoming budget. The government had been evaluating a reduction in Pakistan Telecommunication Authority (PTA) taxes on mobile phones from 25 percent to 18 percent, but the proposal has reportedly been delayed and could be dropped altogether.
As a result, the existing 25 percent PTA tax on expensive smartphones, particularly devices valued above $500, is likely to remain unchanged.
Sources further indicated that overseas Pakistanis are also unlikely to receive any significant relief when bringing mobile phones into the country. The government is reportedly inclined to maintain the current tax structure due to revenue concerns and commitments associated with its economic program with the International Monetary Fund (IMF).
In addition, policymakers are reviewing measures aimed at protecting Pakistan’s local mobile phone assembly industry, a factor that could further reduce the likelihood of cuts in import-related taxes on smartphones.
Local assemblers, including Airlink and Lucky Motor Corporation, are expected to continue benefiting from the existing policy framework that supports domestic manufacturing and assembly.
While discussions on all these proposals are ongoing, sources suggest that the chances of major tax relief for freelancers, IT professionals, mobile phone users, and overseas Pakistanis remain limited as the government focuses on strengthening revenues ahead of Budget 2026-27.
