The federal government has decided to extend tax exemptions on the export of IT products and services till June 2019.
Sources from the government say that the tax exemption on IT exports has been extended in order to facilitate the expansion and growth of the ICT industry in Pakistan to give rise to a new age of technological development.
Federal excise duty on telecommunication services has been reduced to 17% from 18.5%
According to an official at the Ministry of IT and Telecom (MOIT), the Ministry has undertaken numerous initiatives over the last few years to promote development of ICT in the fields of access, skills, marketing and governance for establishing a “Digital Pakistan”.
The official added,
MOIT has successfully created an enabling environment where citizens, companies and the government become technology enabled to avail opportunities being presented by the ‘4th Industrial revolution’.
Tax Reductions Made Across The Board
Federal excise duty on telecommunication services has been reduced to 17% from 18.5% in the federal budget for 2017-2018. Sales tax for Smartphones has also been reduced from Rs. 1000 to Rs. 650 per phone. Custom duties on the import of telecommunication equipment have also been significantly reduced from 16% to 9%.
Withholding tax for Mobile service subscribers was also reduced in the budget, from 14% to 12.5%
Upcoming Programs By The Ministry
Other initiatives by the MOIT include the ICT4Girls program which will target thousands of schoolgirls across the country. The program will focus on advancing their skills and expertise in the field of Information and Communication Technology.
Another similar program for freelancers in the IT industry is also in the pipeline and is due to launch soon.