March 9, 2022 (MLN): Capital Gain Tax on Venture Capital funding into Start-ups has been reduced to zero percent for 5 years, finance minister Shaukat Tarin said on Wednesday.
Addressing a news conference in Islamabad, Shaukat Tarin said that in a historic move, PM has directed to allow IT/ITeS (Information Technology Enabled Services) Companies and Freelancers to retain 100% amount of remittances received through proper banking channels, in FCY Accounts, without any compulsion to convert them into PKR.
Furthermore, there will be no restriction on outward remittances from the FCY accounts for PSEB registered IT Companies and Freelancers.
He further said that Prime Minister also directed SBP to introduce Financing streams for the IT/ITeS sector and Freelancers keeping in view operational architecture and industry needs for these sectors.
He pointed out that the IT sector grew by forty-seven percent last year and currently growing by seventy percent. He said we target one hundred percent growth in this sector during the next year.
Recommendations of the Pakistan Technology Start-up Fund were also approved by the Prime Minister as part of this historic package for the creation of a Public-Private Partnership (PPP) venture capital fund. Ignite National Technology Fund will create this Fund through PPP, he added.
The proposed reforms will help in bringing internationally parked Foreign Currency to Pakistan and encourage foreign companies to shift business to Pakistan.
