ISLAMABAD: The government has imposed “additional tax” at the rate not exceeding 50 percent on income profit and gains of a person or class of persons on account of extraordinary gains due to exogenous factors.
Through the Finance Bill 2023, the Federal Board of Revenue (FBR) has included a new section “99D” (Additional tax on certain income, profits and gains) in the Income Tax Ordinance 2001.
The additional tax shall be imposed on every person who has any income, profit or gains that have arisen to any person or class of persons due to any economic factor or factors that resulted in unexpected income, profits or gains whether or not disclosed in the financial statements.
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According to the Finance Bill 2023, notwithstanding anything contained in this Ordinance or any other law for the time being in force, for any of the preceding five tax years from tax year 2023 and onwards, in addition to any tax charged, paid or payable under any of the provision of the Ordinance, an additional tax shall be imposed on every person who has any income, profit or gains that have arisen to any person or class of persons due to any economic factor or factors that resulted in unexpected income, profits or gains whether or not disclosed in the financial statements.
The federal government, may through a notification in the official Gazette determine economic factor or factors including but not limited to international price fluctuation having bearing on any commodity price in Pakistan or any sector of the economy or difference in income, profit or gains on account of foreign currency fluctuation; provide the rate not exceeding fifty percent of such income, profits or gains; provide for the scope, time and payment of tax payable under this section in such manner and with such conditions as may be specified and exempt any person or classes of persons, any income or classes of income from the application of this section, the Finance Bill 2023 added.
Copyright Business Recorder, 2023