GST on IT services cut from 15pc to 5pc: FBR
By News Desk
June 9, 2023 10:20 PM
The government has attached a priority to the IT sector, the Federal Bureau of Revenue (FBR) Chairman Asim Ahmed and members said.
GST on IT services has been reduced from 15% to 5%., they said while addressing a press conference.
The remittance limit has been increased from 5 million dollars to 10 million dollars and 2% tax on immovable property is abolished.
The rate of taxes in the construction sector has been reduced, the media was told.
The government will give business opportunities to the youth and under 30 years of age youth will have tax exemption to start business
Tax exemption is being given in agriculture sector too, the FBR member policy said, adding that five percent tax will be waived on food and digital payment at restaurants and bakeries.
He continued: tax exemption is being given on agro-based industry in rular areas, loans to SMEs, IT and agriculture.
Presenting the budget in the national assembly, Finance Minister Ishaq Dar said Rs7,200 billion are likely to be collected in tax revenue — and the provinces' share would be Rs4,129 billion during the next fiscal year.
He said FBR is expecting to collect Rs1,618 billion from non-tax revenue, and federal tax collection will be Rs4,689, while total expenditure is estimated at Rs11,090 billion.