Withholding Tax reduced to Zero for Information Technology and Information Technology enabled Services (IT & ITeS) Exports in Special Technology Zones (STZs) 

Reform ID  F080 

Reform Description  

Before:  There were no special tax exemptions for Information Technology and Information Technology enabled Services (IT & ITeS) sector to enhance its exports.  

After:  Now, custom duties have been exempted to facilitate the exports of services in the IT & ITeS sector.  

Sector   IT & ITeS 
Beneficiaries  All IT & ITeS businesses 
Jurisdiction/Location   Federal (Entire Pakistan) 
Department  FBR 
Date of Implementation   03-12-2020 
Timeline  Last 01 Year 




  • IT & ITeS sector has immense export potential but no supportive measures were taken by the Government to benefit from the potential of sector 


  • It was realized that to trigger the rapid growth and exports of IT & ITeS sector special treatment were needed. 




  • The Special technology Zone Authority Ordinance (2020) provided various special incentives to IT & ITeS sector including exemptions form custom duties.  
  • The custom exemptions contained therein have also been added to the tax law vide tax laws amendment ordinance, 2021 whereby these concessions have been given effect by addition of paragraph 4 to PCT 9917 of Pakistan customs tariff.  
Evidence  http://www.na.gov.pk/uploads/documents/1617783286_315.pdf  



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