The government of Pakistan has decided to exempt IT exports and services from taxes till June 2019.The government is giving out this package to promote and boost IT industry of the country as per stated by the Finance Minister, Ishaq Dar in the 2017-18 budget speech.
Furthermore, the government has reduced excise duty on telecommunication service to 17 percent which was previously 18.5 percent.
Moreover, the government also announced that the technology companies and startups would also be exempted from sales tax for the first three years of their establishment. This policy is to be implemented in all the provinces of the country including Gilgit and FATA.
The initiative for boosting IT sector has recently been taken by many countries including France whose President Emmanuel Macron introduced the new government’s policy to make France a digital hub. No only France but Dubai is also pursuing its dream to become a digitally advanced country by introducing projects like paperless passports for its citizens and also a Robocop to patrol its streets. Thus, development in IT sector has been emphasized upon worldwide by making new laws and giving special incentives to this sector for its promotion.
Contributor: Hafsa Ali