• The Government will play the role of a moderator, facilitator and an enabler, rather than a director, in the local IT industry's development.
• Computer Software and Information Technology (IT) have been declared as Industry and placed in Category 'B' of Industries. Annex VI
• Zero percent customs duty on import of IT related machinery and equipment as listed at Annex XXIII.
• Tax relief : Initial Depreciation Allowance (IDA) @50% of machinery & equipment cost.
• The rate of depreciation on computer equipment is 30%.
• Information Technology (IT) enjoys the status of "industry".
• The cost of Internet bandwidth has been drastically reduced by 65%.
• To facilitate the private sector IT telecom industry and to enhance the investor's confidence in the Government, processing period for license applications in the deregulated sector has been reduced to 7 days.
• In order to deliver efficient IT infrastructure, PTCL, would now provide international bandwidth and Internet connectivity to the ISPs and other corporate customers within 4 to 8 weeks.
• As a first step towards, Electronic Commerce, the State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts within Pakistan.
• Internet delivery on Cable TV has been permitted which would result in substantial increase in the Internet usage.
• Universal Access to the Internet even to non connected areas at the cost of a local using the unique '131' Universal Internet Numbers of ISPs has been extended.
• Call Centers, which are important potential source of foreign exchange earnings and employment creation, have been allowed to establish in the private sector.
• Computer networking and majority of IT equipment has been exempted from custom duties.
• Income tax holiday for the IT Training Institutions has been extended by another five years.
• Income of computer training institutions set up to 30-06-2005 is exempt from Income Tax.
• Banks are allowed to invest in the form of equity in dedicated venture.
• Software companies are allowed to retain 35% of their export earning in foreign exchange to meet the expenditure on purchase of hardware/software, foreign travel, marketing and hiring of consultants.
• Tax exemption on export of software for 15 years.

for more information visit : www.pakboi.gov.pk