The budget for the new financial year has announced a reduction in the holding tax rate on mobile phone use.
The withholding tax on mobile services has been reduced from 12.5 per cent to 10 per cent, while it is proposed to gradually reduce it to 8 per cent.
The government says the withholding tax on mobile services has been reduced from 12.5 per cent to 10 per cent to reduce the burden on ordinary citizens.
The government imposed a federal excise duty on mobile phone calls for more than three minutes.
The FED proposes more than three minutes of mobile phone calls and internet data usage in the new fiscal budget.
More than three minutes of calls, Internet as well as SMS messages have been FED.
The government believes that there has been progress in the telecommunications sector and a fair amount of revenue is being generated from this sector.
According to the government, the FED will impose a modest tax on a large section of the population.