The government has granted exemption from minimum tax on National Disaster Risk Management Fund and Deposit Protection Corporation under the Finance Supplementary (Second Amendment) Bill, 2019.
According to the comments of a chartered accountant firm on the Finance Supplementary (Second Amendment) Bill, 2019 issued here on Thursday, clause 11A of Second Schedule Part IV of the Income Tax Ordinance provides the exemption from minimum tax. The bill proposes exemption from minimum tax on following institutions: National Disaster Risk Management Fund and Deposit Protection Corporation established under sub-section (1) of section 3 of Deposit Protection Corporation Act 2016.
The bill has proposed to introduce a new clause 38D through which the exemption from withholding of tax on profit on debt under Section 151 & withholding of tax on payment for goods, services and contracts under section 153 of ITO has been proposed to the National Disaster Risk Management Fund.
The bill proposes to insert a new clause 81A after clause 81 through which the exemption from furnishing of monthly withholding statement under clause (a) of sub-section (1) of section 165 has been proposed to the banking companies for furnishing of information of taxes collected and deducted on cash withdrawal from a bank under section 231A and tax deducted on profit on debt under section 151 of ITO.
The bill, after clause 95, proposes to insert a new clause 95A through which the exemption from advance tax at the time of sale by auction under section 236A has been proposed in respect of auction of franchise rights to participating teams in a national or international league organized by any board or other organization established by the Government in Pakistan for the purposes of controlling' regulation or encouraging major games and sports recognized by the Government with effect from the first day of July' 2019.
The proposal is positive for promotion of sports in the country, however, FBR may lose revenues on auction of new franchise teams of Pakistan Sports League by Pakistan Cricket Board, it added.