The Association of Pakistan software houses (P@SH) has asked the Federal Government not to enter any new tax and a friendly package for the business for the country’s information technology sector in the next fiscal budget, which will be presented on June 10.
In a statement to the media, the president of P@Sha, Sajad Mustafa Syed, revealed that of the $ 700 million invested in the Ti industry of Pakistan, $ 600 million originates in companies affiliated with the association.
He emphasized the dependence of the sector in stability, consistent policies and support incentives to guarantee continuous growth.
“We urge the Government to implement a fixed tax regime for the next ten years, from 2025 to 2035, and to commit to this in the FY26 budget,” Syed said.
Syed also advocated the continuation of the tax rate of retention of 0.25 percent for the companies registered in the Pakistan Software Export Board (PSEB) beyond 2026 under the proposed fixed tax system.
Highlighting a disparity in tax rates within the sector, he pointed out that the remote autonomses of IT face a tax rate of only 1 percent, while salaried employees can pay up to 35 percent in the Income Tax.
Syed asked the Government to harmonize tax treatment in employment categories in the industry.
He also stressed the need to relieve the transfer of income from foreign currency, warning that inconsistent policies can hinder foreign direct investment in the technological ecosystem of Pakistan.
“Without decisive and pro-negocios reforms, almost 600,000 jobs in the IT sector could be in danger,” he warned.
