Stakeholders have welcomed the government’s decision to extend the Final Tax Regime (FTR) of 0.25% for the IT industry and freelancers for another three years until 2029 under the Finance Bill 2026–27.
Talking to Business Recorder, they said that the continuation of the tax regime will further strengthen the confidence of IT exporters and freelancers in the government’s taxation policies, and provide crucial support for sustaining export earnings growth in the years ahead.
Dr Noman Ahmad Said, an IT exporter and CEO of SI Global Solutions, said that the extension of the 0.25% Final Tax Regime for the IT industry is a positive step towards empowering IT companies and exporters that are making significant contributions to the country’s foreign exchange earnings through consistent growth and expansion.
“By incentivising the IT industry, the government will not only attract foreign exchange inflows but also generate higher tax revenues and create employment opportunities for youth,” he said.
He further emphasised that the government should maintain a stable and long-term tax policy for the IT sector to attract both local and foreign investment, accelerate IT exports, and encourage exporters to expand their operations into international markets.
Chairman of the Pakistan Freelancers Association (PAFLA), Ibrahim Amin, said that the proposal to maintain the 0.25% FTR for freelancers is a major relief and a strong source of motivation for both existing and aspiring freelancers.
He expressed confidence that freelancers’ earnings would continue to grow and could potentially double export receipts from $1 billion to $2 billion by 2029, with the number of freelancers will also be increasing to 4 million.
He also urged the government to reconsider its plan to tax content creators, particularly those producing informative and educational content, for at least the next three years.
“The government should first engage with social media and digital platforms to ensure fair revenue-sharing mechanisms for Pakistani content creators. Once a fair framework is established, taxation can be implemented through an equitable mechanism,” he said.
Source: Business Recorder
