ISLAMABAD: The government is seeking approval of the Federal Cabinet for promulgation of the Tax Laws (Second Amendment) Ordinance, 2021 for withdrawal of corporate income tax exemptions from the date of promulgation of the Ordinance.

Sources told Business Recorder here on Thursday that the approval of the Cabinet is needed for approval of the Ordinance and changes made in the earlier draft Income Tax (Amendment) Bill 2021. The Presidential Ordinance would have immediate effect, but it would be corrected when converted into a Bill at the time of the federal budget (2021-21). When this Ordinance would be made part of the Finance Bill 2021, the effective date would become July 1, 2021. Therefore, the actual date for withdrawal of income tax exemptions would be July 1, 2021, top FBR officials explained.

When specifically asked whether the withdrawal of exemptions would have immediate effect, senior officials said, “Yes, but it would be corrected in the Finance Bill 2021 to change the date to July 1, 2021”, they added.

Copyright Business Recorder, 2021