IT industry in Pakistan is expected to boost due to tax cuts in IT export items. The tax exemption would facilitate current government to promote the industry.
IT industry around the world is booming but in Pakistan it has just emerged and it needs support for development. Due to the present situation of the industry tax is being exempted on export items till 2019. The time limit for exclusion of tax on export item has been extended in federal budget 2016-17. An official from the Ministry of IT said that in last couple of years ICTS has been developed in various areas around the country, in order to move towards PM vision of a Digital Pakistan.
MOIT under its Minister Anusha Rehman has created a technology filled environment for the people, industry and authorities. In this environment they can work together, avail the opportunities available and move towards 4th Industrial Revolution.
Other than exemption of tax on export items of IT industry, Federal Excise Duty on Telecommunication Services were reduced to 17% from 18.5%, sales tax on smartphones was reduced to 9% from 16% and withholding income tax for smartphones was minimized to 12.5% from 14% in the recent budget presented.
MOIT has launched several skill development and internship program. These programs include ICT4Girls program that is for thousands of young school girls while it is all set to introduce another program called digital skills training program with the aim to train one million individuals in freelancing. Now the tax exemption and further tax incentives given to the IT industry would help boost and bring development and growth in the sector.