Breaking from recent trends, the federal government has decided to continue concessions for information technology ( IT) and IT services, freelancers and digital exporters. In the budget for FY 2026-27, the government has identified IT, IT-related services sector and freelancers, software houses and digital exporters as assets. The news has sparked debate among key stakeholders.

Context and History

To put this in perspective, analysts point to a number of relevant factors.

In the budget document, it was mentioned that the concession of zero-two-five ( 0.25) percent FTR on IT export income is going to expire on June 30, 2026, but the Prime Minister has proposed to continue this concession system for another three years till June 30, 2029.

The Road Ahead

As the full scope of these developments becomes clear, questions about what comes next remain at the forefront. Officials and analysts agree that the situation warrants continued close attention.