
Pakistan has the potential to attract billions in tech investment if it provides those investors the three streams they most desire: transparency and clarity of tax regulations, simplified and accelerated outflow of their investment funds, and most importantly, a single window for compliance.
The Pakistan Software Houses Association (P@SHA), the national trade body for the Information Technology (IT) and The Information Technology-enabled Services (ITeS) sector has called on the new government to immediately roll out a long-term, stable tax regime for the country's IT and ITeS sectors.
In its "Continuity & Consistency" roadmap reform package, submitted to the Pakistani Ministry of Finance, P@SHA set out fixed, low-cost, and clear actions to reduce confusion in the minds of investors, generate more forms of documentation, and encourage more local and foreign investment.
P@SHA's Chairman explained that currently many technology entrepreneurs and remote workers spend far more time on administrative burdens than they do growing their business or increasing their exports.
The association believes with the correct reforms, Pakistan's digital economy could accelerate with far better outputs.
Some key recommendations include:
- A 10-year fixed tax rate on the IT export
- Equal treatment of Pakistani entities operating in the international zone
- Add a Roshan Digital Banking channel to facilitate foreign currency remittances.
- Eliminate double taxes like super tax and capital gains tax on startup companies.
- A single tax return system across provinces
- One digital window for all labour-related levies and compliance