IT & IT enabled Service sector has recorded exports increase despite the pandemic, with a 40% rise in 2019-2020 and is on track to surpass $2 Billion by the end of this fiscal year. Industry’s private commitment with PM office, by IT Task Force and [email protected], has lately emerged in operation on remarkable actions like STZA, improvements at SBP & SECP. Yet, FBR’s reaching towards Tax Treatment has been damaging to the IT sector’s increase as its strategies aim only at increasing tax by all means.
In coming up with these circumstances, FBR seems to have neglected the truth that the export of IT services is free from business tax. Therefore, there seems no reason to question the business to record sales tax revenues. Even contrarily, sales tax on co-operations is a provincial matter and is outside FBR’s field. The goal seems to drive the nascent start-ups and SMEs to incite extra costs and time for tax agreement alone and would decrease the smoothness of doing sales for 90% of this sector.
We are worried that such sudden variations in tax strategies would not only frighten away new participants/investors but would cause a huge loss to the growth trajectory of current professionals. Tax Privilege on IT exports till 2025 is showing to be the only real support the IT sector is allowed and substituting it with a complicated tax assets management. Rather than producing problems, we think that the state authorities should help the business to reach Pakistan’s Vision 2025 aims.
[email protected] requests the PM to take an urgent step, encourage industry stakeholders to address our matters, and withhold any such plans which hinder the industry extension. [email protected] believes that the matter will be settled by permitting the division with growth-boosting strategies directing Pakistan’s concern at the top.