ISLAMABAD, June 5: The government has levied sales tax on computer hardware but removed customs duties on it in the federal budget for the fiscal year 2006-7. In his budget speech, Minister of State for Finance Omar Ayub said the decision to withdraw sales tax exemption was made in view of unprecedented growth in the information technology sector. The IT sector was the most thriving and growth oriented and it had become the centre of focus of the world especially when it witnessed a consistent growth of 50 per cent during the past three years.

The software export target had been achieved before the close of the financial year, he said.

He said the sector absorbed 100,000 youths last year. Every month, 8,000 people were getting jobs in the sector, while business of call centres and outsourcing was flourishing at a fast pace, he said.

He said prudent policies of the government would help the country emerge as an IT giant.

He said foreign investment in the telecommunication sector had crossed $1 billion during the outgoing year and the total telephone subscriber base would reach the 40 million mark by its end.