Tax begone — a less costly broadband?
Pakistan’s political class loves the vocabulary of transformation. Every year, new visions promise a “Digital Pakistan”, an “empowered youth”, and a “modern economy”. Yet beneath the lofty language lies a stubborn contradiction: the state taxes broadband as if it were a luxury product rather than the backbone of the 21st century. This single contradiction explains why Pakistan continues to lag behind regional peers in digital adoption, economic modernisation, and technological capacity. The country claims it wants digital growth, but it taxes the very oxygen that allows digital ecosystems to breathe. To understand how self-defeating this policy is, one must begin with the tax structure itself. After the 18th Amendment, sales tax on services became a provincial matter, and broadband taxation now varies across the country. These differences only add confusion; they do not change the core problem. Punjab, the largest province and home to more than half the country’s population, conti...