Ishaq Dar, Pakistan's finance minister, underlined during his budget address the value of the IT sector to Pakistan's future success.
Ishaq Dar, Pakistan's finance minister, has proposed many budgetary steps to solve the difficulties experienced by independent contractors and advance the Information Technology (IT) sector, which is a significant development. Pakistan's status as the second-largest contributor to the global freelancing industry is reflected in the government's aggressive approach.
The Finance Minister's decision to classify IT as a Small and Medium Enterprises (SME) sector is one of his major objectives. This choice will open up a number of advantages for IT companies, including a 25 decimal point reduction in the income tax rate for IT earnings over the following three years.
Senator Ishaq Dar emphasised that freelancers earning up to $24,000 yearly are now excluded from sales tax registration and audits, recognising the significance of independent contractors in fostering economic growth. This action will relieve a sizable chunk of the freelance workforce and encourage more people to look for freelance job.
The government has put in place a streamlined income tax return system to simplify the tax procedure for independent contractors. This strategy is designed to be simple and efficient, making it simpler for independent contractors to comply with tax requirements.
The government intends to offer automatic exemption certificates to anyone connected to the IT industry in an effort to support IT workers and assure their recognition. This will help the freelancing industry run even more smoothly and free up contractors to concentrate on their area of specialisation.
In addition, the government has decreased the sales tax on IT services within the city's authority from 15% to 5% in an effort to make Islamabad a more alluring location for IT services. This action attempts to draw in customers and firms from outside while encouraging investment and innovation in the IT industry.
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