ISLAMABAD: The government is planning to table a Finance Amendment Bill 2021 before the Parliament to abolish corporate sector income tax exemptions before June 2021.
Sources told Business Recorder that the permission has been granted to the Federal Board of Revenue (FBR) for drafting of the Bill to be tabled in the Parliament for withdrawal of the corporate tax exemptions. Top government officials and policy makers have approved the proposal for withdrawal of the corporate sector income tax exemptions before the next federal budget. The proposal was also discussed during a top level meeting held on Friday which was attended by the FBR officials and other government departments including Finance Ministry officials.
According to sources, a Bill is likely to be tabled before the National Assembly in the next few days. "Yes approval has been granted on Friday to start drafting of the said Bill to amend the Income Tax Ordinance 2001". However, senior FBR officials further said that if the exemptions are withdrawn in the current fiscal they would become effective from next fiscal year. The working by the FBR shows that the corporate sector enjoys income tax exemptions up to Rs 200 billion and it remains to be seen what quantum of exemptions would be abolished.
Copyright Business Recorder, 2021
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