ISLAMABAD: The proposed Finance Amendment Bill 2021 to be tabled before the Parliament would extend the facility of tax credits and investment credits to different sectors and abolish 80 income tax exemptions/reduced rates from the Income Tax Ordinance 2001.
Sources told Business Recorder that the Federal Board of Revenue (FBR) has reviewed different schedules including exemption schedule and reduced rates schedule of the Income Tax Ordinance 2001. A total of 80 income tax exemptions and reduced rates have been picked for possible withdrawal through the proposed Finance Amendment Bill 2021. The reduced/concessionary rates may be brought at par with the standard rates under the law. However, the concept of investment credits and tax credits would be introduced for different sectors under the proposed law. For example, tax/investment credit would be available to the units operating in the special economic zones etc.
The purpose of the proposed Finance Amendment Bill 2021 is not only limited to the withdrawal of income tax exemptions, but also to facilitate the industries and sectors through investment and tax credits facility.
The government has asked the Federal Board of Revenue to finalize the draft of the proposed Finance Amendment Bill 2021 to be tabled before the parliament during the current week.
Copyright Business Recorder, 2021