Tech startups seen thriving on tax exemption

ISLAMABAD: The announcement of a tax exemption for three years for the technology startups, in the federal budget 2017/18, would not only add to the economic growth of the country but also have a knock-on effect of polishing Pakistan’s image around the world, a business leader said on Monday.

“The information technology (IT) companies based in Islamabad have been relieved from sales tax on exports. The same facility should be extended to those operating in Lahore and Karachi,” Mian Zahid Hussain, president Pakistan Businessmen and Intellectuals Forum (PBIF), said in a statement.

Lauding the government for announcing steps to boost IT sector in the budget Hussain said such decisions would attract local/foreign investment, expand GDP, and result in job opportunities.

“The decision to establish IT park in Islamabad at a cost of six billion rupees and allocation of Rs20 billion for laptops and youth programme were laudable moves,” the PBIF chief said.

He added that allocation of Rs 200 million for e-gateway would strengthen mobile banking, upgrade the skills of IT professionals, and boost small and medium enterprises (SMEs) working in this field.

“The provincial governments are also urged to consider giving relaxations to this sector,” he said and added the reduction in duty on telecom equipment would trigger up-gradation, while reduction of withholding tax (WHT) on mobile calls was also a good move.