The Government of Pakistan has unveiled a progressive Budget 2017-18 especially for the Information Technology sector of the country. One of the highlights of the federal budget is the revelation that the new tech companies will be exempted from Income Tax for the next three years in Pakistan.
Umar Saif, Chairman PITB took to Twitter to express the importance of the development. He said:
“Big win for Pakistan startup ecosystem: Technology companies and startups will be exempted from sales tax for the first three years of their establishment. #Budget2017”
This is a major development that will provide landmark results for the IT sector. With the inclusion of 3G and 4G technology in Pakistan a few years ago, this sector has seen a surprising boom in the shape of various new tech companies and startups. Now, these companies can work towards improving their products and operations as they won’t have to worry about losing a lot of money via income taxes.
The government has also reserved Rs. 6 billion for an IT Park that will be established in collaboration with South Korea. Punjab already runs a successful IT park that contributes towards the digitization of the province, one project at a time.
With the increase in startups, Pakistan has also witnessed a rising rate of incubation centers including Plan 9 in Lahore, National Incubation Center in Islamabad, Nest I/O in Karachi etc. who nurture the companies to attain future growth.