ISLAMABAD - IT industry is likely to get extension in tax exemption till June 2019 as the government has proposed tax exemption incentives in the budget 2016-17.

According to a handout from the Ministry of IT, the proposals made by Finance Minister Ishaq Dar are actually on the basis of suggestions compiled by the Ministry of IT.

The IT ministry had compiled a proposal for extending tax exemption on exports of IT services which was submitted to the Ministry of Finance and FBR.

In addition to the tax exemption on exports, the ministry had also proposed exemption of sales tax on computers including laptops and desktops to promote the growth of IT usage in the country, the handout said.

It further said that the ministry took up these proposals with the Ministry of Finance and requested that the IT industry is in an infancy stage when compared with some other countries in the region and its exports should be exempted from tax to ensure further sectoral growth.

State Minister for Information Technology, Anusha Rehman, said that once these proposals are approved by the National Assembly, it will work as a catalyst for further growth of Pakistan’s IT industry.

Managing Director PSEB, Asim Shahryar Husain, hoped that the industry would reciprocate to these tax rebates from the government by remitting more of their foreign income to Pakistan.

Pakistan has tremendous IT talent and potential, however, this potential should be reflected through growth in remittances and exports also, Hussain said.