Govt Abolishes 15 ‘Expired’ Exemptions from Income Tax Ordinance

The proposed ‘Income Tax (Second Amendment) Bill, 2021′ on the withdrawal of corporate income tax exemptions has abolished 15 time-bound exemptions from the Income Tax Ordinance, 2001.

The review of the draft of ‘The Income Tax (Second Amendment) Bill, 2021′ revealed that many time-bound exemptions that had expired over the last many years still exist in the Exemption Schedule of the Income Tax Ordinance, 2001.

These 15 exemptions have also expired and need to be eliminated from the relevant provisions of the Income Tax Ordinance, 2001.

Sources told Propakistani that there will be zero revenue impact of the withdrawal of these 15 time-bound exemptions as most of them have expired.

However, overall the government has made 78 changes in the Income Tax Ordinance, 2001 regarding exemptions and concessions. The withdrawal of 24 exemptions out of these 78 changes proposed in the Second Schedule of the Income Tax Ordinance, 2001 will have a significant revenue impact. However, the withdrawal of 15 income tax exemptions will have no revenue impact.

Around five to six of those exemptions have been withdrawn where beneficiaries had stopped taking exemption benefits under the Income Tax Ordinance, 2001.

Courtesy: Pro Pakistani

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