Govt to introduce Fixed Tax regime for IT Sector
Our Correspondent
The government has decided to introduce fixed tax regime for IT sector to promote exports in the upcoming budget.
The government has also planned to offer incentives to those who want to start new businesses in the IT sector.
The Prime Minister directed the preparation of a comprehensive package for the information technology sector in the upcoming budget for the next financial year.
A committee was formed to work on the fixed tax regime, and its recommendations were required to be submitted promptly.
Prime Minister Muhammad Shehbaz Sharif held a high-level meeting here on Tuesday.
During the meeting, several proposals were discussed to promote information technology.IT Ministry Seeks Rs 16.5B Allocations in Budget 2023-24
During the meeting, several decisions were made to boost IT exports, implement a fixed tax regime in the IT sector, and provide special incentives to new business start-ups.
In addition, the meeting approved the provision of special incentives for individuals starting new businesses in the IT sector.
Measures were also decided upon to encourage youth to venture into their own businesses and to promote trade and commerce through modern technology and IT. The expansion of the youth skilling program in the field of IT and advanced technology was given the green light, along with the creation of special training IT zones.
The Prime Minister instructed that the budget for the next financial year should include recommendations related to IT.
The approval of these budget recommendations for the IT sector is expected to generate employment opportunities on a large scale.
Moreover, the Prime Minister emphasized the need for special guidance and government support to facilitate the establishment of new companies in the IT sector.
Furthermore, the Prime Minister directed the organization of road shows abroad to showcase the IT sector and inform others about the available facilities.
The meeting also approved a significant expansion of the youth skilling program in IT and modern technology.
Currently, 45,000 youths are undergoing IT skill training in the country, and the government plans to provide laptops to 100,000 deserving youths in the upcoming budget.
The Prime Minister highlighted that tax incentives would be offered to IT companies in Special Technology Zones.
The facility of keeping tax incentives for three years was extended by 35% to enhance their capacity.
The IT Ministry and relevant authorities were instructed to collaborate with the sector and finalize suggestions for facilitating the budget.
The meeting received a detailed briefing on the development of the IT and telecom sectors and the increase in IT exports.
The government has implemented comprehensive measures to enhance IT exports, aiming to achieve a 100% increase from the current levels.
It was also noted that the ongoing professional training of approximately 45,000 youths in the IT sector would not only make them self-sufficient in terms of employment but also contribute to generating additional job opportunities.
The Prime Minister issued instructions to finalize the budget proposals for the development of the IT and telecom sectors.
Federal Ministers Ishaq Dar, Syed Aminul Haque, and Maryam Aurangzeb, as well as Adviser to the Prime Minister Ahad Khan Cheema and Minister of State Ayesha Ghos Pasha, were present in the meeting. Special Assistants Tariq Bajwa, Jahanzeb Khan, Tariq Pasha, and Shaza Fatima Khawaja, along with Senator Afnanullah, the Governor of the State Bank, the Chairman of the FBR, and other senior officials also attended. Experts from the IT and telecom sectors, including Asif Peer, Zohaib Khan, Naseer Akhtar, Hatem Bamatarf (CEO of PTCL), Mudsar Hussain (Vice President of Jazz), and Kamal Ahmed (Deputy CEO of Telenor), were also part of the meeting.
