Dar Rejects Withdrawal of ‘Neglible’ Tax on IT Exports

Finance Minister Ishaq Dar has rejected the IT industry’s demand to dismiss a ‘negligible’ tax on services in order to boost the sector’s teetering exports but has agreed on including exemption from tax audits.

Speaking in the meeting of the Prime Minister’s Task Force on Information Technology (IT) and Telecommunication on Sunday, Dar pointed out the sector’s effective tax rate was “peanuts” and advised industry players to develop the habit of paying taxes on their earnings rather than seeking exemptions. Dar described the Rs. 2.5 tax on Rs. 1,000 worth of exports as “nothing.”

The country’s top finance frontman guaranteed that IT professionals who export their services would not receive tax notices from the Federal Board of Revenue (FBR) and that their tax returns would not be audited to reduce their revenue cost. He directed the tax regulator to establish a unit where dedicated officers serve as a one-stop shop for refund and tax credit cases involving the IT sector.

The finance minister said that the sector has immense potential for growth and could play a significant role in strengthening Pakistan’s economy.

The minister, considering the proposals of the Ministry of Information Technology and Telecommunication, directed the concerned authorities to take steps for the facilitation of the IT sector and remove bottlenecks in order to encourage its exports.

Federal Minister for Information Technology and Telecommunication Syed Amin Ul Haque, SAPM on Youth Affairs Shaza Fatima, SAPM on Finance Tariq Bajwa, Governor SBP, Secretary Finance, Secretary IT, Chairman FBR, Chairman PTA, and other senior officers attended the meeting.

via Dawn



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