Govt Takes Steps to Support IT Sector and Freelancers in Pakistan

Government’s Budgetary Measures Aimed at Resolving Freelancers’ Issues and Promoting Growth in the Information Technology Industry.

In a significant development, Pakistan’s Minister of Finance, Senator Ishaq Dar, has announced several measures in the budget to address the challenges faced by freelancers and promote the Information Technology (IT) sector. The government’s proactive stance reflects Pakistan’s position as the second-largest contributor to the global freelance market.

One of the key initiatives introduced by the Finance Minister is the classification of IT as a Small and Medium Enterprises (SME) sector. This decision will unlock various benefits for IT businesses, including a reduced income tax rate of 25 decimal points for IT revenues over the next three years.

Recognizing the importance of freelancers in driving economic growth, Senator Ishaq Dar emphasized that freelancers earning up to $24,000 annually are now exempt from sales tax registration and audits. This move will provide relief to a significant portion of freelancers and encourage more individuals to pursue freelance work.

To streamline the tax process for freelancers, the government has implemented a simplified income tax return mechanism. This user-friendly approach aims to make it easier for freelancers to comply with tax obligations, reducing complexities and enhancing efficiency.

In a bid to support IT professionals and ensure their recognition, the government plans to issue automated exemption certificates to individuals associated with the IT industry. This will further facilitate the seamless functioning of freelance work and enable freelancers to focus on their core expertise.

Moreover, in an effort to make Islamabad a more attractive destination for IT services, the government has reduced the sales tax rate on IT services within the city’s jurisdiction from 15% to 5%. This move aims to stimulate investment and innovation in the IT sector while attracting foreign clients and businesses.

Syeda Qandeel Zehra
Syeda Qandeel Zehra
Syeda Qandeel Zehra is a senior content writer with writing expertise in different niches. She is an MBA graduate by qualification and loves to write about diverse topics. Zehra has 3 years of writing experience and currently employed at as a content writer.


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