ISLAMABAD: The government is likely to withdraw the corporate sector income tax exemptions through a Presidential Ordinance before the next fiscal year.
Sources told Business Recorder here on Saturday that if the exemptions are withdrawn before coming budget, the Ordinance will be made part of the next Finance bill 2021-22. The FBR has finalized corporate sector income tax exemptions up to Rs 100-150 billion to be withdrawn from the Income Tax Ordinance 2001. The FBR has reviewed the list of corporate tax exemptions under the relevant schedules of the Income Tax Ordinance 2001. The FBR has identified tax exemption of corporate sector with an estimated cost of Rs 100-150 billion that are expected to be withdrawn through Presidential Ordinance. However, if these exemptions are withdrawn in current fiscal year, it would become effective from the next fiscal year. It is also learnt that the Finance Bill for the next fiscal year would incorporate the amendments being made in the Income Tax Ordinance 2001.
The working done by the FBR showed that the corporate sector enjoyed income tax exemptions up to Rs 150-200 billion and it is yet to be seen how many exemptions would be abolished following approval of the policy makers, they added.
Copyright Business Recorder, 2021
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