These days, Pakistan government and the private sector are pushing themselves to the limit to emulate the success of India in outsourcing and Information Technology (IT). To do so, Pakistan needs to ensure the availability of PCs to as many people as possible. However, Pakistani government imposed 15% General Sails Tex (GST) on import and sale of computers, computer hardware, printers and accessories last week in the national budget for FY 2006-07. Now, Pakistan Computer Association (PCA) leaders have stated that as a result of GST, there was a significant decline in sales of PC. They are strongly urging the government to reconsider this decision and withdraw GST.
I am also against this GST as Pakistani IT sector is just taking off. This industry is generating thousands of new jobs in the recent months and if Pakistan wants to achieve world class success in this sector then Pakistan government has to ensure more widespread use of computer and Internet. By imposing 15% GST, Pakistan government get a few million dollars more of tax from the IT sector but as a result of falling sale the IT industry will suffer a huge setback in its forward march.
What is your idea about it?
Lower the GST to 10% perhaps. The government also has the right to draw taxes from developments in the IT sector to further improve this particlular industry but their approach to it leaves little room for its development in terms of accessibility and affordability.
Posted by: nepspeed82 | June 12, 2006 1:06 PM | Permalink to Comment