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PCA for removal 15 pc GST on IT
SHR Jahfery
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 Karachi 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
President, 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.
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