The Federal Government is likely to withdraw various taxes of Rs 70-100 billion for different sectors in the upcoming Finance Bill 2021-22. Market sources stated that the Federal Cabinet had given a ‘go-ahead’, but it needs the National Assembly’s final approval.
The sources claimed that different associations have submitted proposals to the Federal Government to remove unnecessary taxes. However, the Federal Cabinet reportedly approved the proposals to withdraw taxes of Rs 70-100 billion, with the same being presented in the National Assembly for amendments in the income tax ordinance under the Fiscal Year 2021-22 Budget. According to sources, the federal cabinet approved the proposal to remove the tax credit of enlistment of new companies. The enlisted entity is currently eligible for a tax credit of 30% in the first year and 10% each in the second and third year of listing.
The government also recommended withdrawing tax exemption on profit to person (s) while selling and transferring the property to Real Estate Investment Trust (REITs) along with tax exemption on profits of Power Generation Company’s whereby the letter of intention has been issued after June 30, 2021.
