Budget 2016-17 Roundup: Government may exempt taxes for laptops imports and export of IT services and products
The Federal Budget for 2016-17 may have brought some bad news for mobile phone-enthusiasts with an increase in sales tax but it has also proposed some great policies for exempting taxes for a number of Technology services.
Regarding laptops, Ishaq Dar announced yesterday that the sales tax on import of all laptops may be exempted. This move would be hugely beneficial to facilitate the growth of the budding, yet nascent, Information Technology sector of Pakistan. The government has already been actively working to provide free laptops to students under the PM Laptop Scheme and this step will allow even morePakistanis to have access to a laptop.
Ishaq Dar also proposed an extension in the tax exemption for export of IT services and products until June 2019. However, do note that all IT companies taking relaxation through this exemption will have to remit 80% of their revenues through banking channels to Pakistan whilst keeping 20% of the revenues outside of country for their financial needs.