KARACHI – According to the reliable sources, on the behest of IMF our Government is actively considering to impose 15 percent General Sales Tax (GST) on the Information Technology (IT) industry from next fiscal year.

In the opinion of Hanif S. Kalia, Chairman, Kalia Group, it will leave a negative effect on growth of the IT industry of Pakistan as IT is still at infant stage and imposition of such taxes at this time is not at all recommendable.

The upcoming decision from government should be negated by the concern organisations, as any decision of imposing taxes on the IT sector will even weaken the IT industry.

Currently, we are already far behind from our neighbour country India in IT sector from every respect. As India’s export is more than US $12 billion per annum whereas Pakistan’s export is hardly 50 million which is less than 1 percent.

Again, we are less then 1 percent of overall IT market and IT manpower of India. Our IT industry have not yet achieved maturity in the development cycle. By imposing such taxes on IT industry, not only IT sector will be badly affected, but overall economic progress and prosperity of our country will be crippled.
Source: Business Recorder
Date:5/19/2004