Finance Minister Ishaq Dar didn’t agree with the IT industry’s request that a “negligible” tax did take off services in order to boost the industry’s falling export. Instead, he did agree to exempt tax audits.
At a meeting of the Prime Minister’s Task Force on IT on Sunday, Dar did talk about the “peanuts” effective tax rate of the sector and urged business leaders to get in the habit of paying taxes on their earnings instead of looking for exemptions on export. Dar thought that a tax of Rs. 2.5 on exports worth Rs. 1,000 became “nothing.”
The country’s top finance Minister Dar did promise that IT experts who export their services will not get tax warnings from the Federal Board of Revenue. This is to cut down on revenue costs (FBR). He told the tax authority to set up a department with employees who would handle all tax credit and refund result describes to IT and act as a single point of contact.
Pakistan’s finance minister says that this industry has a lot of room to grow and could make a big difference in the country’s economic growth.
In response to suggestions from the Ministry of Information Technology and Telecommunication, the minister has done tell the relevant agencies to take steps to remove restrictions on the IT industry and boost its exports.
Syed Amin Ul Haque, the Federal Minister for Information Technology and Telecommunications, Shaza Fatima, the SAPM for Youth Affairs, and Tariq Bajwa, the SAPM for Finance, as well as the Governor of the State Bank of Pakistan, the Secretaries of Finance and Information Technology, the Chairman and Deputy Chairman of the Federal Board of Revenue and the Pakistan Telecommunications Authority, and other senior officers are for.