In a recent Senate Standing Committee on Information Technology meeting, Senator Anusha Rahman raised significant concerns regarding the misuse of tax exemptions by certain companies that falsely represent themselves as IT firms. She highlighted that these businesses are, in reality, engaged in goods-related activities, hence undermining the integrity of the IT sector. Despite many legitimate IT companies reporting losses over the past six to eight months, these dubious firms have continued to operate profitably, leading to suspicions about their actual business practices.
The Federal Board of Revenue (FBR) investigated this situation and discovered that 3,200 firms are functioning under the pretense of being IT companies, with only eight of them registered with the Pakistan Software Houses Association (P@SHA). Senator Rahman expressed concern over this trend, noting a staggering loss of $300 million in the IT sector during January and February alone. She warned that if this pattern persists, it could substantially harm the nation’s economy.
Additionally, Senator Rahman pointed out that the absence of a customs fee system during the specified period casts doubt on the classification of all these companies as IT firms. Minister Khawaja acknowledged that not all legitimate IT companies align with P@SHA and raised questions about the assertion that if one company suffers losses, others must be making profits.
Despite the challenges, Minister Khawaja noted an increase in internet usage and IT growth, stating that fixed-line internet services have been stable. The Prime Minister has ordered the FBR and the State Bank to ensure that legitimate IT companies are not subjected to undue harassment, while the committee has called for comprehensive details about the questionable firms for further discussion in the next meeting.
