ISLAMABAD: The Federal Board of Revenue (FBR) has exempted income tax on profit on debt and capital gains from debt and debt instruments approved by the federal government, derived by any approved non-resident banking company.

The FBR has amended the Seventh Schedule (rules for computation of the profits and gains of a banking company and tax payable thereon) of the Income Tax Ordinance 2001 through a notification issued on Thursday.

Revenue shortfall may ‘force’ FBR to tax banking profits as well

According to the notification, in exercise of the powers conferred by rule 10 of the Seventh Schedule to the Income Tax Ordinance, 2001, the federal government has made further amendment in the Seventh Schedule.

Under the new sub-rule, profit on debt and capital gains from debt and debt instruments approved by the federal government shall be exempt from tax chargeable under the Income Tax Ordinance, derived by any non-resident banking company approved by the federal government for the purpose of this sub-rule, the FBR added.

Copyright Business Recorder, 2023

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Maqbool Feb 24, 2023 11:42am
Ridiculous, Government by exceptions to the rules , in a country where foreign passport holders are given preferential treatment over tax paying Nationals.
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Dr Mansur Muzaffar Feb 24, 2023 02:22pm
Need Clarification. 15% withholding tax on profit on deposits in banks, National Savings is finished?
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Muhammad Ali Feb 24, 2023 02:26pm
What a contradiction & cruelty to Pakistanis by Pakistani govt??? We are victim of Rs. 170 Billion addition taxation during next four months, utilities prices up by 50% & inflation of 40%. Despite above, they are stupidly generous to give tax exemptions to selected offshore lenders. Inefficiency, favortism & mismanagement of this scale will destroy our economy with irreversible dents. Inna lillah .............
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Amjad LONE Sep 19, 2023 08:41pm
If someone's profit from Defence savings certificates (matured after 10 years) is 6 million, what can he do? Where and how can he enter this profit? This profit is from ten years but more than 5 million What is the solution? Thanks for the answer
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