In the recent news, Pakistani freelancers have generated export revenue of $397.328 million during Fiscal Year 2021-22 at a growth rate of 2.74 percent. The latest earning figure comprises IT-related exports of $265.444 million and non-IT-related exports of $131.884 million. When compared with FY2020-21, Pakistani freelancers generated export revenue of $396.243 million. This included IT-related exports of $363.064 million and non-IT-related exports of $33.179 million.
IT-related Exports Earning Generated by Pakistani Freelancers Have Decreased by 26.88%
In comparison between the IT-related exports generated by Pakistani freelancers over the two years shows that IT-related exports have severely decreased by 26.88% during FY2021-22. On the other hand, non-IT-related exports have recorded a staggering increase of 297.492% during FY2021-22. Furthermore, IT export remittances worth $265.444 million by Pakistani freelancers during FY 2021-22 accounted for 14.77% of the total ICT export remittances of $2.616 billion during the same period.
The Govt has Taken Taxation Measures of Rs440 Billion to Meet Annual Target
In addition to this, according to the coalition government’s first budget, the government has taken taxation measures of Rs440 billion and enforcement measures of Rs200 billion to meet the annual target of Rs7,004 billion. The federal government has imposed a 0.25 percent tax on the export proceeds of IT Services or computer software.
According to the Finance Bill, the export proceeds of IT services/ computer science software/ IT Enabled services by persons registered with the Pakistan Software Export Board will be taxed at a flat rate of 0.25 percent in the fiscal year 2022-23. While any other IT-related exports will be taxed at a flat rate of 1 percent.
Read more: Government Imposes Taxes on the Export Proceeds of IT Services
