Senate Panel Raises Concern About Misuse of IT Tax Exemptions

The Senate Standing Committee on Information Technology, chaired by Senator Palwasha Khan, convened Tuesday to discuss the appointment of the CEO of Ignite and address concerns regarding tax irregularities within the IT sector. Concerns were raised about companies operating under the guise of IT companies to gain tax exemptions, while actually dealing in goods. Senator Anusha Rehman highlighted that many of these companies are not registered with P@SHA (Pakistan Software Houses Association). The committee expressed concern over the potential loss of millions of dollars due to these irregularities. The committee requested complete details of these companies in the next meeting. IT Minister Shaza Fatima stated that FBR systems where being improved, and that it was incorrect to assume that all those companies were not IT companies. She stated that P@SHA also had internal politics, and that not all IT companies where registered with them. She said that the prime minister had given instructions that IT companies were not to be harassed. She highlighted that IT growth had increased in the past year.