Karachi:
In Pakistan, IT companies have demanded the government to ease taxes on the information technology (IT) sector so that exports can be increased manifold in the coming years.
Mohammad Amir Nizam, senior vice chairman of Pakistan Software Houses Association (Pasha), said that the income tax rate on employees’ salaries should be reduced from 35 % to 5 %, so that IT companies can facilitate their export growth.
He said the move would give IT companies a competitive edge, compared to freelancers, who only pay 1 % tax. He added that the Pasha government is demanding 10 -year tax exemptions, facilitating foreign exchange rules, support of commercial banks, eliminating sales tax complexities, providing funds to promote skills and special technology zones (STZS) and IT parks.
Mohammad Amir Nizam also demanded the government to abolish the huge 10 % tax imposed on debit card transactions on foreign currency accounts as it consumes a large portion of IT companies’ income.
He said that information technology has become Pakistan’s rapidly growing export industry and the country is nearing $ 4 billion in IT exports in the financial year 2025 (July 2024 to June 2025).
Datawlat Pakistan CEO and award -winning serial entrepreneur Mahesh Salman said that the government should raise budgets for the promotion of emerging technologies such as artificial intelligence (AI), cyber security, Internet of Things (iOT), and data engineering.
Mahesh Salman also suggested that subsidies and training should be provided to female professionals and scholarships should be given to the students so that women’s contribution to the IT sector can be increased.
IT is the only industry with a trade balance, about 75 % of the surplus, said Mohammad Zohaib Khan, a technology expert and former chairman of Pasha. It is the only sector that can grow rapidly, develop skilled workforce, provide employment opportunities, reduce trade deficit and keep the current and external accounts of the economy.
