With features such as extension and reduction in tax for holidays as well as IT serving firms it seems though that the future budget shall be having great incentives for the IT area as confirmed news for considering extension in tax holidays for telecom company’s three years export has already been given.
The tax holiday IT export contract will end by June 2016 whereas it is the Pakistan Software Board that gets the IT industry extensions in tax reduction or exemption. These given incentives will greatly encourage more IT companies to come to Pakistan rather than going to any place else in the whole world.
The financial budget for the year is also being thought to be reduced from 8 pc to 2 pc by the federal government’s finance team. This happened as a result of many IT companies (40 pc going to UAE) going abroad due to the imposition of the minimum 8pc tax on their services during the year. What they did was that they remained in the country through support but did all their billings in the UAE which left the Pakistani government nothing to have its tax collection.
It is being said that the Punjab Government is also considering risking zero percent tax policy continuation for the same while the 19 pc broadband tax in the province has also been brought down in order to encourage it, its services and particularly the internet usage.
