IT industry welcomes removal of VAT, NBT for software

The IT industry said yesterday removal of Value Added Tax (VAT) and Nation Building Tax (NTB) for software was a big boost for SMEs to computerise and streamline their business, thus driving it with proper information systems.

Sources said that currently many SMEs don’t have proper control of their working capital cash flow, etc. and some even don’t know their true debtors and stock balances; hence there is reluctance for them to purchase software because of VAT and NBT causing extra cost.

“We see a win-win situation following the Budget 2011 move. It is a stepping stone for SMEs to move into large enterprises,” sources added.