ISLAMABAD: In a bid to promote the Information and Communication Technology (ICT) sector, Federal Board of Revenue (FBR) allowed import of personal computers, laptops and printers at 2% customs duty.
In order to further promote ICT sector the government brought down rates of customs duty on many items of this sector in the last budget.
Long term incentives on income from exports of computer software or IT services or IT enabled services were given special treatment on account of levy of income tax, sales tax and customs duty as Second Schedule of Income Tax Ordinance, 2001.
“In this regard, income generated from ICT service providers was assessed to tax under normal tax regime in the light of the Second Schedule of the Income Tax Ordinance, 2001 before June 2015” a well placed official source told Customs Today.
The proposals for incentives to specific sectors are considered while preparing the Budget for next fiscal year” the source added saying that the Budget exercise for fiscal year 2016-17 would start from March this year.
Moreover, through Finance Act, advance income tax deductable on services rendered by corporate entities at 8% was declared as minimum tax payable under the Ordinance. However, later corporate service sectors including software sector agitated against the levy of minimum tax at 8%.
But the source said that after extensive negotiation with them Income Tax (Second) Amendment Ordinance, 2015 was promulgated in October, 2015 in which an option was given to corporate software sector to pay minimum tax @ 2% as against 8% on Pakistan source income from IT services provided that taxpayer shall furnish their accounts for audit in respect of tax year 2016.
The launch of 3G and 4G is one of many steps in this direction. Such efforts are directed towards increased coverage and penetration of ICT in the far flung areas of the country.
Telecom sector has been excluded from the recently levied one percent additional customs duty as well. Income from exports of computer software or IT services or IT enabled services up to the period by end of June this year.
