After the federal govt got rid of the tax credit program in the budget for 2022-23, IT companies have to deal with a more complicated tax system.
In new govt budget says that IT firms only have to pay 0.25 percent tax. If they give the Federal Board of Revenue four documents (FBR). If they don’t follow the rules, they will have to pay a 25% tax penalty. Before giving the company the new tax exemption program. An FBR officer will look at the company’s paperwork to see if it provides IT services or not.
Under the guise of “Taxes” and “Fees,” the government can force businesses to pay money.
The text of the budget doesn’t make it clear if the current govt plans to keep the IT plan put forward by former Prime Minister Imran Khan. The money’s use remains unclear. In the eyes of the IT industry, the current government had promised to keep its predecessor’s IT package. This tax is a step in the opposite direction.
Badar Khushnood, who is in charge of P@SHA, says that the IT industry wants the current govt to cut taxes 100%. The best thing for the sector would be for taxes to be easier to understand. For funds that have already been through the State Bank of Pakistan. You don’t need to give any extra paperwork (SBP).
No one may sue over the new levy on non-income-producing property.
Khushnood said the FBR has clearance to look at company documentation, which has been slow due to human issues. He said that the FBR harassed or bribed the companies and that those whose services didn’t meet the officers’ demands were told that they didn’t belong in the IT industry.