Special Assistant to the Prime Minister on youth affairs Miss Shaza Fatima and the Prime Minister's task force on Information technology and Telecom sector, convened a meeting in the Prime Minister's office to discuss IT sector exports taxation issues and the impact thereof particularly of small and medium IT companies and software houses, with Chairman Federal Board of Revenue Mr. Asim Ahmad, officials of the Ministry of IT and representatives of PASHA. The Prime Minister Mian Shehbaz Shareef constituted a task force to devise ways to increase the Information Technology exports by 3 billion dollars till 2023.
There is no audit of IT sector export-oriented companies through budgetary measures in the current financial year for ensuring ease of doing business and reducing the cost of tax compliance. As fixed and final tax regime has been introduced in this fiscal year therefore, no tax or audit notices will be sent to the IT sector professionals and easier documentation will be the priority, said Chairman Federal Board of Revenue.
On the note of exemption from the proposed 0.25 percent tax, this will remain and it is a quarter of what the other exporters pay. In the Final Tax Regime, the Federal Board of Revenue has agreed in principle to resolve sales tax registration and return filing issues.
The definitions of IT in the June 2022 Finance Act were deliberated upon, and found to be all inclusive. The Federal Board of Revenue has also agreed in principle to propose necessary changes in law for all I.T. exports to attain the benefit of final tax regime.
In principle the Federal Board of Revenue agreed upon the proposal that if the Provincial consensus is reached, FED can be reduced from 19.5 % to 17% for Telecom sector.
The funds received by the IT sector through applications like Payoneer etc. will be given the benefit of final tax regime through necessary changes in the law, if required.
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