Internet to Get Cheaper? Govt Waives ROW Charges Amid Calls to Cut 19.5% Internet Tax

The government has eliminated nationwide Right of Way (ROW) fees for internet lines. This move aims to lower operating costs for phone companies. It should also speed up broadband network growth. Government officials and industry leaders agreed on this. They met recently to discuss making internet access cheaper.

Waiving ROW charges will reduce the financial strain on telecom firms. These companies often paid a lot to lay fiber optic cables. This change is seen as a key step. It will boost digital connections. It also supports Pakistan’s goals for its IT and telecom sectors. The Wireless and Internet Service Providers Association of Pakistan (WISPAP) supports digital progress. They praised the decision. WISPAP Chair Shahzad Arshad called it a smart move. He believes it will help build broadband, especially in rural areas. This is because it lessens the financial pressure on internet providers. Ultimately, customers will benefit.

However, the group stressed that this change alone won’t lower prices. They pointed out the 19.5% sales tax on internet services. WISPAP wants provincial governments to remove this tax. They warned that without this tax relief, monthly internet bills will stay too high for many.

Arshad explained that cutting ROW fees is good. But he added that affordable internet needs both infrastructure changes and tax relief. He stated that millions of Pakistanis need better access. This includes students, freelancers, and small businesses. He emphasized that digital access is no longer a luxury. It is a necessity.

WISPAP also thanked the Ministry of IT & Telecommunication. They also commended the Prime Minister’s guidance. This work aligns Pakistan’s digital policies with global trends. Similar moves have been seen in India, Bangladesh, and parts of Europe.

Why This Matters for the Economy

  • Operational Relief for ISPs – With ROW savings, providers can invest more in faster, more reliable connectivity.
  • Tax Relief Means Real Savings – Cutting the 19.5% internet tax would result in tangible monthly savings and boost adoption.
  • Macro Impact – Lower internet costs can energise e-learning, freelancing, e-commerce, and startup ecosystems—fuelling growth in Pakistan’s digital economy.

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