Govt to impose 30% on IT Exports & Services

[SEOminati]

Wo kehte hain na riyasat khud dehshat gard paida Karti hai. Theek kehte Hain, apni na ehli chupaane k liye kisi ki mehnat ki kamai pe Bethe bithaye daaka hai ye. Why shouldn't I start to stop bringing dollars to evade this tax? Why shouldn't I contact an exchanger every month and transfer him dollars and get PKR here?

 

[AZ1]

https://twitter.com/x/status/1534076381562273792

 

[Valar.]

https://twitter.com/x/status/1534076381562273792

Good. It will translate into our exports being even cheaper.

 

[SEOminati]

Good. It will translate into our exports being even cheaper.

It will also translate into our essential imports even being more higher.

 

[Valar.]

It will also translate into our essential imports even being more higher.

Which will translate into lesser usage of essential imports like oil. For other essential but not so essential items, people are gonna buy local products.
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[313ghazi]

Which will translate into lesser usage of essential imports like oil. For other essential but not so essential items, people are gonna buy local products.
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You're trolling right?

 

[Valar.]

You're trolling right?

No. Many well educated posters here in last 3 years have updated my knowledge about currency devaluation and how it is good for economy - both macro and micro. I believed them.

 

[SEOminati]

Which will translate into lesser usage of essential imports like oil. For other essential but not so essential items, people are gonna buy local products.
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You're suffering from something very serious. Get well soon mate.

 

[TheSnakeEatingMarkhur]

https://twitter.com/x/status/1534045263362400262

If its happen I dont know we would be short of billions next years we are already short from $3.5 billion to $2.5 billion and this tax will reduce our IT industry.

IT sector was given no subsidies or help when all other industries were bombarded with subsidies. And not relying on subsidies made them strong.

Only after rupee devaluation they earned enough to invest back and industry grew post 2019.

Only relief they had was no taxes till 2025. (2015 to 2020 by PMLN and 2020 to 2025 by PTI) and now that industry is growing so fast they are imposing tax it will have 2 consequences.

1) It will kill the growth.
2) It will kill the confidence of IT industry in Govt like it did with industry back when industries were nationalised.

 

[Ghazwa-e-Hind]

IT is the only industry that was bringing majority of remittances to Pakistan without any subsidies.

I guess time is not far away when people start taking law in their own hands.

-- If this 30% tax is implemented, country will default. I repeat Default.

 

[TheSnakeEatingMarkhur]

These are speculations until official but generating revenue from IT exports, petrol, GST, automotives is the easiest way for governments to literally do nothing and still get a lot in return. But khair when there's a will there's a way. No way I would let this or even IK government take my earnings my literally providing nothing in return. 20% Upwork and Fiverr lete hai because they connect buyer and seller or government?

This is also a problem in our society we think that we don't have to pay our taxes when govt is doing their job.


It goes both ways we pay income taxes etc and they provide services. But with our country the problem is we have loads of loans and pensions to pay so whatever govt gets, goes into those things instead of services that govt needs to provide.


They should have stuck with no tax till 2025. After that gradual increase tax upto 20% to 30% depending on income brackets. IT industry is growing well so it shouldn't be destroyed with taxes now.

30% Tax on IT exports, 20% on salaries.

End of the day, the IT industry is going to hit the buffers as everybody jumps ship.

Cocomo/DHA me invest karo bharwo! IT IT lgai hui hai.

30% on exports and 20% on salaries ? In UK it is based on income. And that too according to income brackets.

Pakistan needs to put an income based taxation system.

Btw most of the IT services providers are freelancer (Self employed) will they pay tax on exports or salaries?

Not true. While they might have investments in India, it was Noora who gave IT industry exemption from tax and Shahiq Khaqan further expanded that to 2025. Let's call spade a spade.

It was extended by IK to 2025 in 2020 not Shahid Khaqan. Nawaz gave tax exemption from 2015 to 2020 and Khan from 2020 to 2025.

 

[AZ1]

What I particularly hate about the 30% or even 10% tax is that I know how I have came this far. I have two to three internet connections, a have arranged an electricity backup, I have to give them proof of my earnings to open a bank account, I don't have an identity. What did the government did for me?

so 20% goes to fiverr, 30% goes to govt, like 100,000 earning will be cut into 50,000?

Good. It will translate into our exports being even cheaper.

Which exports? we imports more than we exports. Raw material we import, if prices go to high exporter wouldnt able to have enough profit.

 

[TheSnakeEatingMarkhur]

Btw just leaving this here

What I particularly hate about the 30% or even 10% tax is that I know how I have came this far. I have two to three internet connections, a have arranged an electricity backup, I have to give them proof of my earnings to open a bank account, I don't have an identity. What did the government did for me?

I know a guy from Pakistan who made his accounts in UK on someone elses name and gives him 10% of the profits and gets 90% of earnings as his accounts (Ebay) are in UK he isn't bothered about it.

Rich Manufacturing Mafia has subsidies on imports, they pay minimum wage to their workers have subsidized imports and then sell the products to local consumer without any exports.
The youth which sell their knowledge to foreign countries, make startups, employ educated people and are basically contributing towards exports are being marganlized by this corrupt mafia we call govt.
ARMY IS INCREASING ITS BUDGET BY 6% MEANWHILE HEC HAS 50% BUDGET REDUCTION. CAN ANY ARMY PERSON HERE EXPLAIN THIS LOGIC TO ME?

Irony isn't it ?

Which will translate into lesser usage of essential imports like oil. For other essential but not so essential items, people are gonna buy local products.
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What local products ? Most of the raw materials for your made in Pakistan stuff comes from outside.

Even Cooking Oil depends on Palm Oil imports.

 

[SEOminati]

This is also a problem in our society we think that we don't have to pay our taxes when govt is doing their job.


It goes both ways we pay income taxes etc and they provide services. But with our country the problem is we have loads of loans and pensions to pay so whatever govt gets, goes into those things instead of services that govt needs to provide.


They should have stuck with no tax till 2025. After that gradual increase tax upto 20% to 30% depending on income brackets. IT industry is growing well so it shouldn't be destroyed with taxes now.


30% on exports and 20% on salaries ? In UK it is based on income. And that too according to income brackets.

Pakistan needs to put an income based taxation system.

Btw most of the IT services providers are freelancer (Self employed) will they pay tax on exports or salaries?


It was extended by IK to 2025 in 2020 not Shahid Khaqan. Nawaz gave tax exemption from 2015 to 2020 and Khan from 2020 to 2025.

Buddy I am on mobile and very slow with typing on a touch screen hence I will add to that part later. But it was infact Shahid Khaqan: https://www.google.com/amp/s/propak...tion-on-it-exports-for-another-six-years/amp/

 

[mourning sage]

Time to put all money into property now that the waderas and the experienced team is back on. We'll see all sectors of economy from agriculture to IT to textile taking a hit.

A big thank you to the defenders of the nation. Youve made us proud.