The Federal Board of Revenue (FBR) submitted a bill to the National Assembly (NA) secretariat, consisting of tax amendments to withdraw about 36 tax exemptions. It will be applicable from July 1 2021 under the International Monetary Fund (IMF) programme. According to media reports, Bill will be introduced in the next session of the lower house. The bill will be called the income tax (second amendment) bill 2021,
The bill proposes to streamline the tax system for non-profit organisations, listing of firms in the stock market, tax exemptions for oil refineries, special economic zones (SEZs) set up under the China-Pakistan Economic Corridor (CPEC) and Independent Power Producers (IPPs).
Amendments also proposes specific revision of penalties for those taxpayers who will not file / submit their income tax returns. Amendments also proposes to allow 100pc tax credit on incomes from exports of computer software. It also includes IT services or IT enabled services. This exemption is available until June 2025. It is important to mention that there will be no turnover tax for the IT sector anymore. Such Tax Credit Scheme replacement, is subject to fulfillment of some conditions. Such as filing / submission of tax withholding statements and sales tax returns.
Industry stakeholders discussing their concerns over the proposed amendments and discouraged any such proposals that could harm the industry growth.