RS 6 bn allocated for establishment of IT park in Capital: Dar

RS 6 bn allocated for establishment of IT park in Capital: Dar

ISLAMABAD, May 26 (APP): Delivering Budget speech in the
National Assembly, Minister for Finance Muhammad Ishaq Dar Friday said that the Government of Pakistan realizing the importance of
Information technology has taken a number of measures in past and
will continue with similar measures in future.
He said that the Government will set up a IT software park in
Islamabad with the help of Korean Government at a cost of Rs 6
billion. The financial arrangements for this have been concluded and
the construction work shall start soon, he added.
The minister said that the start-up software houses
shall be exempted from Income Tax for the first 3 years while
exports of IT services from Islamabad and other Federal territories
shall be exempted from Sales Tax.
He said IT export houses/ companies shall be allowed to open
Foreign Exchange Accounts in Pakistan on the condition that deposit
in these accounts shall only be allowed through remittances from
abroad in respect of their export earnings.
They will be allowed to use these accounts for meeting
business related payments outside Pakistan,he added.
Dar said tat mobile phones being an important element in
providing IT connectivity and the mobile telephony is heavily taxed.
He said it has been decided to provide a relief to common man
by reducing the withholding income tax on cell phone call from 14%
to 12.5% and Federal Excise Duty from 18.5% to 17%. We hope that in
the same spirit the provincial government shall also reduce the rate
of sales tax on mobile telephony and for encouraging use of smart
/ android phones – custom duty shall be reduced from Rs.1,000 to
Rs.650; and import duty is being reduced on mobile telecom products.