In order to boost the sector’s teetering exports, Finance Minister Ishaq Dar rejected the IT industry’s demand to drop a ‘negligible’ tax on services.
The Prime Minister’s Task Force on Information Technology (IT) and Telecommunications met on Sunday, where Dar said the sector had a peanut tax rate and advised industry players to pay taxes instead of seeking exemptions. An Rs. 2.5 tax on Rs. 1,000 worth of exports is nothing, according to Give.
Federal Board of Revenue (FBR) officials assured IT professionals exporting their services they would not receive tax notices or have their tax returns audited to reduce revenue costs. An IT-specific refund and tax credit unit should be established by the tax regulator, where dedicated officers serve as one-stop shops.
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A significant contribution to strengthening Pakistan’s economy could be made by this sector, according to the finance minister.
In consideration of the proposals of the Ministry of Information Technology and Telecommunication, the minister instructed the concerned authorities to remove bottlenecks for the IT sector to become more competitive.
Federal Minister for Information Technology and Telecommunication Syed Amin Ul Haque, SAPM on Youth Affairs Shaza Fatima, SAPM on Finance Tariq Bajwa, Governor SBP, Secretary Finance, Secretary IT, Chairman FBR, Chairman PTA, and other senior officers a