Govt Plans Tax Exemptions for Startups Next Fiscal Year

The federal government is planning to give tax exemptions to local startups next fiscal year. If approved, the exemptions would cover health technology, artificial intelligence, financial technology, and agriculture technology sectors, reported Dawn on Wednesday. This initiative was discussed during a meeting chaired by Prime Minister Shehbaz Sharif on Tuesday. IT Minister Shaza Fatima Khawaja highlighted tax exemptions as a means to address the disparity between private individuals and startups. Currently, private individuals enjoy zero tax, while those associated with organizations face a 35 percent tax rate. PM Shehbaz instructed the central bank governor to ensure that banks do not create obstacles for software exporters regarding debit cards and foreign currency issues. He also emphasized the need for private-sector consultations to support startups. A target of $25 billion in IT exports was also set till 2029, with plans to expand tech services and captive IT businesses. The premier was briefed that the Pakistan Digital Nation project aims to digitize state affairs and the economy. Additionally, a target has been set to train approximately 1.5 million individuals in the IT sector over the next five years. The meeting was informed of plans for ensuring international certifications for IT professionals through public-private partnerships, establishing three IT parks, and setting up 250 e-Rozgar centers. The meeting also discussed enhancing mobile broadband coverage to 100MBPS and increasing fiber penetration to 12 percent. Shehbaz underscored the potential of the IT sector in Pakistan and the critical role of entrepreneurs in its development.