The PAC Chairman said the information technology industry was at present faced with the imposition of 17 percent sales tax being charged on the component parts assembled inside the computers, thereby neutralising the government''s budgetary announcement under which the computer/laptop bearing the same component parts were placed under the zero-sale tax regime.
He said that amendment in the existing Tax Policy with a view to help the IT industry in smooth and unhindered running of its business as well as to help the government in enhanced revenue generation. Basharat Baloch said PCA believed that its proposals/recommendations if accepted and included in the upcoming budget will help creation of jobs, development of higher level of skills, development of new technologies, innovation in industry, transfer of knowledge, economic development, opportunity for government to document, Encouragement of R&D culture, ripple effect benefits in greater broadband adoption, saving of foreign exchange, lesser reliance on foreign countries to fulfil local needs, potential emergence of viable specialised logistics catering to manufacturing companies, wide-spread utilisation of IT due to affordability of locally assembled products, respectability of products "Made in Pakistan" due to government support, revival of industry & association of quality with local products and increase in Foreign Direct Investment.
He said "IT industry is the 4th pillar of our economy and the government must set its milestones and announce the Vision 2020 for economic growth led by automation in IT industry and increase PC accessible to every households across the country."
The LCCI Acting President said in Pakistan, there were 200,000 schools without PCs and 2.5M small businesses yet to own a PC, adding Pakistan stood at 143rd position out of the 157, downward slide in United Nation''s ITU ICT index.
He said the promotion of the information technology in countries like, China, Vietnam, Portugal, Argentina, was linked to the growth of their local IT assembling industries. "Pakistan has the potential to do the same and the aforesaid recommendations will serve as guidelines to accelerate the prospects and improvements of the IT industry in the country with greater impact on our economy. The Lahore Chamber would extend due support to the Association''s proposals for inclusion in the upcoming budget for 2017-2018 for the growth of IT industry," he added.
Copyright Business Recorder, 2017