PCA urges govt to remove 15% GST on IT Industry
ISLAMABAD: The information technology industry in Pakistan is on the verge of total collapse and in dire need of immediate attention of the present government. The growth of the industry has already shown tremendous and unprecedented decline which is not only a bad omen for the future of the industry but also the future of the national economy as well as generations to come.
The fall of the growth rate to just 9.6 % from 16 % in a short span of time is self explanatory and the phenomenon has already forced many of the players in industry to shut down their business. The downfall is mere result of imposition of 15 % GST on industry which needed a favorable environment from government to grow and benefit the country.
Munawar Iqbal, the president of Pakistan Computer Association (PCA) expressed these concerns at the occasion of specially convened executive body meeting of the association. Besides others the meeting was attended by Feroz Ali, president of PCA Karchi Chapter, Abrahim Qureshi, President Lahore Chapter, Mirza Tousif Ahmad, President of Faisal Abad Chapter, Zaka-ur-Rehman, President Peshawar Chapter, Arshad Junjua, General Secretary, Jamal Yousaf, Senior Vice Prsident, Asad Haider, Furkan Murtaza, Abdullah Malik and Walid Sufi.
The participants of the meeting unanimously urged the Federal Minister for Finance, Syed Navid Qamar to look into the affair and gravity of the situation where the fourth pillar of economy is shattering down due to ill conceived policies in regard with the sector which is vital for the all other sectors of the economy. Munawar Iqbal while giving various details of the decline of the industry said that the prices of computer and its accessories have been increased almost 30 % and its rapidly getting beyond the purchasing power of common man of the country. He said that as a result of unfavorable business conditions 20 % players of the industry has left the business and rest or struggling while hoping for positive steps from new government as a last hope in this regard.
The president of the PCA said that the energy crises, decline of the value of rupee and inflation are the other factors that have contributed in the decline of industry. He said that the imposition of the duty on used computer has also resulted in increase of the prices and now a common man is deprived of even this “luxury” to have a used computer at least.
The participants of the meeting while alluding towards the ECC’s meeting and special meeting of the member sales tax with Software Exports Board and other concerned departments said that the officials of these government bodies have also shared the views expressed by PCA, Hence the government and Minister for Finance Syed Navid Qamar ought to do something concrete including the removal of 15% GST in forthcoming budget to save the computer industry in Pakistan. The government while making decision in regard with Information Technology need to consider that this industry has been declared fourth pillar of the economy owing to its tremendous potential as an engine of economic growth, employment generator, foreign exchange earner, and productivity enhancer in all sectors of the economy, the members of the PCA added.-SANA
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