Federal Minister for Information Technology and Telecommunications Syed Amin-Ul-Haque has termed the measures announced by Finance Minister Miftah Ismail concerning removing the withholding tax, statement conditions, and capital gains tax for the telecom sector insufficient and urged for more decisions and reforms to achieve big goals from the IT sector.
Finance Minister Miftah Ismail announced in his address to the Parliament on Friday that the conditions of withholding tax and statement on the IT industry have been abolished. Further, capital gains tax has been abolished on investors in the IT sector. He also announced the abolition of holding and sales tax on IT companies with sales of up to Rs. 80 million and exemption from statements.
Haque said that it is a good idea to remove the withholding tax and statement conditions from the IT industry. He said the removal of capital gains tax from those who invest in the IT sector may be beneficial but these measures are insufficient.
He said that to boost the IT sector and maximize the value of foreign exchange, it is necessary to take early decisions on all the proposals that the IT Ministry has sent to the Finance Division.
He further said that it is important to ensure the implementation of these declarations and issue a clear directive to the Federal Board of Revenue (FBR) so that there is no ambiguity. T
The minister said that further decisions and reforms are urgently needed in this regard as the best results can be achieved only by implementing all the proposals of the Ministry of IT in its real spirit.
According to the Federal Minister for IT, the uncertain policies are not allowing the confidence of the industry to be restored, besides, the FBR must also understand that the IT sector is important for the country’s economy and a major resource for foreign remittances, they should not be unduly harassed.
Haque further said that they are also waiting for the announcements of the Finance Minister on the proposals related to the telecom sector.
He further said that the telecom sector is the backbone of the IT sector, on the one hand, the IT sector needs further reforms and on the other hand to make IT strong and better results telecom sector must be facilitated. So the problems in the telecom sector also need to be addressed, they are interconnected.
“Without communication facilities, how can we achieve targets from the IT sector, which depends entirely on the World and its International clients”, said the minister, adding that as a minister, he was fully aware of the challenges facing the IT and telecom sector and it cannot sit still until a logical solution is found.