Islamabad: Senator Anushay Rehman says that textile mill owners are registering their textile exports as information technology exports to avoid the recently imposed 29 percent income tax.
Speaking at a meeting of the Senate Standing Committee on Finance on Wednesday, former Minister of State Senator Anushay Rehman said that textile exporters are taking unfair advantage of the reduced 0.25 percent income tax facility to increase information technology exports. The committee meeting was chaired by PPP Senator Saleem Mandviwala.
It should be noted that 29 percent income tax has been imposed on textile exports, while the tax rate on information technology exports is still 0.25 percent, while the tax rate on IT services exports is 1 percent.
In the meeting, FBR Co-Chairman Rashid Langrial assured the committee to investigate the matter. It should be noted that during the first half of the current fiscal year, IT exports increased by 28 percent to $1.9 billion, while experts were predicting a decline in IT exports due to repeated internet shutdowns by the government.
In this context, doubts are being expressed about this rapid increase in IT exports. According to the details presented to the Senate, 652 IT companies were registered in January, which constitutes 20 percent of the new companies registered last month. Senator Anushey Rehman was informed about these details by the IT industry.
The IT industry has expressed concern that this will lead to an unrealistic expansion of the IT industry, due to which the government may also end the income tax concessions.
IT industry sources say that companies registered after June have exported significantly more than companies registered for a long time, which is also a cause for concern, and it indicates irregularities.
