Islamabad: According to news reports, the Senate Standing Committee on Information Technology and Telecommunications passed the ‘Special Technology Zones Authority Bill, 2021′ on Tuesday (September 28).
The bill intends to develop information technology (IT) infrastructure while also establishing regulations to help local firms and stimulate FDI in the country’s IT sector. A 10-year tax break for zone developers and businesses was also extended by the Senate committee.
According to the minutes of the meeting, the authority would help create a favourable environment for local IT enterprises to compete in the global market and create work opportunities for youth. IT industries in the proposed Special Technology Zones will be exempt from income tax, sales tax, and customs taxes, according to the newly constituted body. Companies will also be permitted to open foreign currency bank accounts.
According to the Officials of the Ministry of Science and Technology, the establishment of the Special Information Technology Zones would enhance technology transfer, attract foreign direct investment, develop a collaborative ecosystem connecting academia, research and technology industry, initiate innovation in production systems and products and increase the standards and quality of technology goods and services within the country.