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End of IT boom? Experts warn that withdrawal of Tax exemptions would hamper Pakistan’s IT exports

When Pakistan pursues a future $10 billion IT export target, the decision of the government to withdraw tax exemptions from the IT industry, institute crackdowns on freelancers and IT companies, and issue tax notices. The ire of the major IT stakeholders, including P@SHA has therefore been drawn. Now Dr. Umar Saif, Punjab's Former Chairman, and a senior IT specialist have warned the Government of the move to "hamper" IT export development. He was also deplorable that the IT industry was not encouraged by the government to leverage its true potential.

In a recent episode of the show, "Dunya Kamran Khan Ke Sath," hosted by the veteran journalist Kamran Khan, Dr. Umar shared these views. He also acknowledged that the Pakistani IT industry is rapidly approaching a tipping point, which is why the exemptions should not be deleted.

While Dr. Umar was concerned about removing IT sector tax exemptions, he also said that because IT industry tax has long been null, there was tremendous growth over the years, as most IT firms have not had to deal with income tax and filing processes. IT businesses have not had to pay the tax. However, now that the former scheme has substituted a system of fiscal credit, it will have to be a complex and lengthy reporting process for IT businesses to request in order to receive exemptions.

During the exhibition, anchor Kamran Khan said that the recording of new IT companies has reached its highest level, that millions of young people lead the IT business and IT export growth will turn Pakistan's future dramatically. The government's tax exemptions have ended, instead of an IT package that resembles the building package, as IT experts projected to cross 2.5 billons by the end of the year and Karachi, Lahore and Islamabad become hubs of software technology.

"Imran Khan must take the chance and implement an IT package in line with the building package," said the Anchor. "The new companies of the developing IT industry have employed millions of young people, and millions more could be employed in the right policy."
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