Pakistan Software Houses Association (P@SHA) has called on the federal government not to introduce any new taxation and a business -friendly package for the country’s information technology sector in the upcoming tax budget to be presented on June 10.
In a statement to the media, P@Sha -Chairman Sajjad Mustafa Syed revealed that $ 700 million invested in Pakistan’s IT industry stems $ 600 million from companies affiliated with the association.
He emphasized the sector’s dependence on stability, consistent policies and supportive incentives to ensure continued growth.
“We urge the government to implement a fixed tax regime for the next ten years, from 2025 to 2035, and to commit to this in the FY26 budget,” Syed said.
SYED also advocated the continuation of the 0.25 percent withholding tax rate for companies registered with Pakistan Software Export Board (PSEB) beyond 2026 under the proposed fixed tax system.
When he highlighted a difference in the tax rates in the sector, he pointed out that remote the freelancer is facing a tax rate of only 1 percent, while employees may pay up to 35 percent in income tax.
SYED urged the government to harmonize tax treatment across employment categories in the industry.
He also emphasized the need to facilitate the transfer of income to foreign currency and warned that inconsistent policies can prevent foreign direct investments in Pakistan’s technological ecosystem.
“Without crucial reforms of pro-business, almost 600,000 jobs in the IT sector could be jeopardized,” he warned.
