Tax exemptions on IT exports to promote sector

Govt initiates training programme to realise dream of ‘Digital Pakistan’


APP July 06, 2017
Recent skills advancement initiatives taken by the ministry include an ICT4Girls programme targeting thousands of school girls and a soon-to-be-launched programme for freelancers. PHOTO: AFP

ISLAMABAD: The federal government has extended exemption of taxes on exports of information technology (IT) products and services till June 2019 in federal budget 2017-18.

Government sources said that the exemption on (IT) exports is meant to incentivise expansion and growth of the IT industry which can usher Pakistan into a new age of technological advancement.

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Over the last few years, the Ministry of IT and Telecom (MOIT) has taken several initiatives for the development of information and communication technologies (ICTs) especially in areas such as access, skills, marketing and governance in pursuit of a ‘Digital Pakistan’, a Ministry of IT official said.

“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’,” the official added.

Every year, MOIT works with the Ministry of Finance, Federal Board of Revenue (FBR) and other agencies to introduce incentives and initiatives that can increase the pace of Pakistan’s transformation into a knowledge economy.

It is pertinent to mention that the federal excise duty on telecommunication services has been reduced from 18.5% to 17%, in the recently announced federal budget. Similarly, sales tax on sales of smartphones has been reduced from Rs1000 to Rs650 per set, while customs duties on imports of telecom equipment have almost halved from 16% to 9%.

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Mobile phone subscribers have also been provided relief in the form of a 1.5% reduction in withholding income tax, from 14% to 12.5%. Recent skills advancement initiatives taken by the ministry include an ICT4Girls programme targeting thousands of school girls and a soon-to-be-launched programme for freelancers with a total capacity of over a million.

Published in The Express Tribune, July 6th, 2017.

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