‘Tax incentives to stimulate growth of IT industry’

ISLAMABAD: Anusha Rehman, Minister of State for the Information Technology (IT) said on Wednesday the new tax incentives announced by the government in the budget 2016/17 would stimulate growth of IT industry

The minister, chairing the board meeting of Pakistan Software Export Board (PSEB), said the government has granted three years further extension to tax exemption in order to stimulate growth in IT sector.

“It is expected that his decision will enhance the volume of IT exports, increase employment opportunities and play a significant role in the growth of IT industry,” the minister said.

The board meeting was convened to assess the state of IT industry of Pakistan and to evaluate the steps being taken by PSEB to bolster the long term growth of the IT Industry as well as its exports.

The minister said tax on domestic revenues will also be reduced from July 2016 and there will be no sales tax on desktops and laptops either. 

“The IT industry would reciprocate to these tax incentives by remitting all their income to Pakistan to reflect the real growth and potential of the industry,” she added.

The board was informed that feasibility study for a new IT park on PSEB’s land in Islamabad, being conducted by Korean consultants is near its completion and final feasibility report will be submitted by mid of July 2016.

The minister directed PSEB to have a close liaison with Korean team for early finalization and submission of feasibility study so that ground breaking ceremony could be scheduled at the earliest.

The board was also updated on CMMI and ISO training and certification program by the managing director PSEB.

The board was informed that under the program, nine companies will be trained and certified in CMMI and eight companies each will be trained and certified in ISO 27001 and ISO 20000 standards during 2016-17.

The Minister said that these international certifications will improve quality of processes and products/services of IT companies and will solidify their credibility with their foreign customers and will also help them to generate new business avenues and exports opportunities as well.