Federal Board of Revenue has notified the reduction in sales tax of IT services and IT enabled services for Islamabad region.
According to a tweet by Barkan Saeed, Chairman Pakistan Software Association (PASHA), the sales tax for IT services will be set at 5% for Islamabad and other federal territories.
Not to mention, the move is in-line with Digital Pakistan Policy — approved by outgoing government during its last week — that promised major incentives for IT industry.
It is hoped that other provinces will follow suit and a reduction in sales tax for IT industry will be introduced in rest of Pakistan as well.
As per Digital Pakistan Policy 2018, here are some other incentives that government will offer to IT industry:
Furthering the enabling environment for the sector, additional Incentives were announced in the newly approved policy that includes: