Businessmen seek removal of GST on IT products

[LahoreEstate]

Staff Report

ISLAMABAD: The business community on Friday demanded the government to remove 16 percent General Sales Tax on IT products and claimed that it badly affected the industry.

Through its removal, they claimed that the information technology would grow up to its potential and it would benefit the economy. President Islamabad Chamber of Commerce and Industry, Mian Shaukat Masud expressed these views during a meeting Pakistan Computer Association.

The ICCI chief said regional countries like India, Sri Lanka and Bangladesh were giving top priority to IT sector and India was earning huge foreign exchange by exporting its products. The government should realise the potential and should come forward to support the industry so that the country could more benefits from the development of IT culture.

Speaking on the occasion, President, Pakistan Computer Association, Abdullah Malik, said GST was imposed on all hardware computer PC and servers. Through GST imposition the smuggling increased and the IT companies were suffering. The IT products worldwide come under WTO which implements zero tax rates to all country specially developing countries so that rapid progress could be made in all fields. He said the IT industry margin was hardly 2-4 percent net and paying 17 percent GST (at import stage) and further GST paid on the sale plus having 3.5 percent withholding tax, its like giving government 25 percent. He said ICCI should take up IT industry problems with relevant forums.

http://www.dailytimes.com.pk/default.asp...2009_pg5_3