Minister for Finance and Revenue Miftah Ismail on Friday said that the government has decided to withdraw withholding tax and condition of statements in the IT sector.
Winding up the budget debate in the National Assembly, he said “the IT companies earning less than Rs 80 million would not pay withholding tax and require the condition of statement as was earlier announced in the federal budget 2022-23.”
He said the venture tax imposed by the Pakistan Tehreek-e-Insaf (PTI) government on the IT sector had also been withdrawn.
Minister for Information Technology and Telecommunication Amin ul Haque in a statement hailed Finance Minister Miftah Ismail for abolishing conditions of statement and withholding tax on the IT industry.
Pakistan earns $2.19bn from IT exports
IT Ministry approves Rs32bn for USF, Rs3.75bn for Ignite
The investors who wanted to invest in the IT industry would get huge benefits from repealing the capital gain tax, Amin said.
He hoped that the government would not only implement the initiatives but also issue a clear direction to the Federal Board of Revenue (FBR) in this regard.
The IT minister said implementation of these decisions in true spirit would yield positive results and boost the industry.
He termed the incentives a welcoming development but called for more incentives and reforms in the IT industry.