In an attempt to promote the technology sector in the country, the federal government has decided to extend tax exemption on exports of Information Technology (IT) services and products till June 2019 in the federal budget 2017-18.
The move is aimed to incentivize growth and expansion of the IT industry, which will likely promote and encourage technological advancements in Pakistan.
Over the past few years, the Ministry of Information Technology and Telecom (MOIT) has been taking different initiatives in order to encourage development of Information and Communication Technologies (ICT) in Pakistan, an official commented.
“MOIT has successfully created an enabling environment where citizens, companies and the government become technology enabled to avail opportunities being presented by the ‘4th Industrial revolution’,” the official added.
Each year, MOIT collaborates with the Ministry of Finance, Federal Board of Revenue (FBR) and other concerned institutions to offer incentives that can speed up the pace of our country’s transformation into a knowledge economy.
It is appropriate to mention that federal excise duty on telecommunication services has been dropped from 18.5% to 17% in the current budget. Moreover, sales tax on smartphones has also been reduced from PKR 1,000 to PKR 650 per smartphone, while duties on imports of telecom equipment have also been reduced from 16% to 9%.
In any case, we at BizUpdates believe that this a great initiative taken by the federal government as it will help the technology sector of the country to flourish at a faster pace.
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