Information technology is emerging as a vital organ of the national economy. This is the reason that the government of Pakistan is paying a great deal of heed to promote the IT sector. Pakistan has announced the incentives for zone enterprises that will definitely bring positive effects on the overall industry. The incentives package comes with various measures and is being designed after a thorough analysis. We hope that all these incentives will bring fruitful results.
Pakistan Announces Incentives for Zone Enterprises
The following shall be incentives for zone enterprises namely:
- The authority will be free from all income taxes (withholding tax, presumptive tax) for a period of ten years from the date of issuance of a license.
- Exemptions from all customs duties and taxes on capital goods but not limited to materials, plant, machinery, hardware, equipment and software imported into Pakistan.
- There will be no property tax for ten (10) years from the date of issuance of a license by the Authority.
- The Authority, as well as zone enterprises, will not pay general sales #tax (G.S.T) on goods and services on import of plant, machinery, equipment and raw materials for the consumption of these items within zones.
- Tax exemption on dividend income and long-term capital gains from investments in a venture capital (VC) undertaking for a period of ten years from the date of issuance of a license by the Authority.
Government of Pakistan is offering the incentives package in order to facilitate this sector as the higher authority is aware of the fact that IT industry has huge potential to increase the country’s exports manifold. These incentives will help the industry to overcome all the challenges that it faced in the past.
In March 2020, we informed you that the government has prepared an incentives package for promotion of the information technology sector. To learn more: Click Here