P@SHA Seeks Decade-Long Tax Relief Boost

The Pakistan IT Industry Association (P@SHA) has formally requested the government to extend the Final Tax Regime (FTR) for IT and IT-enabled services (ITeS) exports by 10 years, from its current expiration in June 2026 to 2035. The FTR allows registered IT exporters to pay a reduced withholding tax rate of 0.25% on export proceeds, a policy that has significantly contributed to the sector’s growth.

P@SHA has urged the government to extend the 0.25% Final Tax Regime on IT exports until 2035 to ensure policy stability and investor confidence. In its FY26 budget proposals, it also called for lower income tax on salaried IT professionals to reduce brain drain and recommended tax exemptions on dollar payments from foreign currency accounts to simplify cross-border transactions and increase foreign exchange inflows.