The wait is over for the IT industry who has been seeking incentives from the federal government for a long time now. Yesterday, Federal Minister for Finance Shaukat Tarin granted approval for the establishment of a Rs 10 billion fund for rendering cash rewards to IT firms against their exports. In addition to that, the government will also provide a five percent rebate on IT exports.
Government Approves Rs 10 Billion Fund for IT Industry
In a meeting with [email protected] (Pakistan Software House Association) and PSEB (Pakistan Software Export Board), the finance minister shed light on the fact that IT exports need to be improved. He provided a guarantee that the government will render all possible facilities to the IT sector.
After appreciating the decision of the finance minister, [email protected] showed concerns over the attitude of the Federal Board of Revenue (FBR) and alledged the tax collecting body of harassing the exporters and also creating impediments in the growth of the IT sector.
During the meeting with the finance minister, [email protected] along with PSED informed him of hurdles faced by the software houses and IT exports.
The meeting was briefed that rebate will be offered at the rate of 5pc of exports while 1pc of annual remittances by the IT sector would be granted to PSEB every year to organize skill development program, capacity enhancement of IT companies, branding, marketing establishment of software technology parks across the country.
Talking to Dawn, Mr. Nasir said the new development will ultimately assist in increasing remittances from the IT services up to $3.5bn in the ongoing fiscal year against $2.1bn in 2020-21. Furthermore, he said,
There are many expenditures and payments for companies around the world but due to restrictions, they do not remit the entire amount into Pakistan. Now it has been decided that foreign companies can repatriate their profits to any foreign country.
During the meeting, the finance minister has also agreed that the “freelancers” will soon be authorized to open a special dollar account in order to receive payments for their individual IT exports.