Tax exemption announced for IT for ensuring sectoral growth

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ISLAMABAD, Jun 4 (APP): In the budget proposals for 2015 2016, the federal government has proposed extension in tax exemption on export of Information Technology (IT) services till June 2019 as well as sales tax exemption on computers and laptops to ensure growth in the sector.

Ministry of IT had conducted meet up sessions with the IT
industry to get feedback from the industry, said a press release issued here on Saturday.

Ministry of IT compiled a proposal for extending tax exemption on exports of IT services which was submitted to the Ministry of finance and Federal Board of Revenue (FBR).
In addition to tax exemption on exports, Ministry of IT had
also proposed exemption of sales tax on computers including laptops and desktops to promote the growth of IT usage in the country.

Ministry of IT took up these proposals with Ministry of
Finance and requested that IT industry is in an infancy stage when compared with some other countries in the region and it’s exports should be exempted from tax to ensure further sectoral growth.

Minister of State for Information Technology, Anusha
Rehman said that once these proposals are approved by the National Assembly, it will work as a catalyst for further growth of Pakistan’s IT industry.

Anusha Rahman hoped that once the budget is passed, the
industry would reciprocate to these tax rebates by remitting more of their foreign income to Pakistan.

Pakistan has tremendous IT talent and potential. However,
this potential should also be reflected through growth in software export remittances also.