The coalition government’s first budget was presented where the government has taken taxation measures of Rs440 billion and enforcement measures of Rs200 billion to meet the annual target of Rs7,004 billion. The federal government has imposed a 0.25 percent tax on the export proceeds of IT Services or computer software.
0.25% tax on the export proceeds of IT Services
According to the Finance Bill, the export proceeds of IT services/ computer science software/ IT Enabled services by persons registered with the Pakistan Software Export Board will be taxed at a flat rate of 0.25 percent in the fiscal year 2022-23. While any other IT-related exports will be taxed at a flat rate of 1 percent.
Where major relief has been provided for salaried individuals, business individuals, and AOPs the IT Sector and particularly freelancers are pushed into a troublesome phase. The new tax measures can make things difficult for the growth of the IT industry and the freelancers who posted some great points on the table in the past few years. The finance minister said that the government had embarked on introducing drastic measures in the Federal Budget 2022-23 to uplift and put the economy on a sustainable growth trajectory.
Read more: Pakistan’s IT Exports Surge to $1.9 Billion at a Growth Rate of 29.26 %
IT exports increased by 29.26% in nine months
According to an official of the ministry of IT and Telecom, the ICT export remittances, including Telecommunication, Computer, and Information Services for the period July 2021 to March 2022 have surged to $1.948 billion at a growth rate of 29.26 percent in comparison to $1.507 billion during the same period in FY 2020-21. The official further stated that the net exports for the period July 2021 to March 2022 during FY2021-22 are $1.472 billion, which is 75.56 percent of $1.948 billion in exports.
Read more: Pakistan’s IT Exports Surge to $1.9 Billion at a Growth Rate of 29.26 %
