ECC offers new tax regime for non-resident firms

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has offered a simple tax regime to non-resident companies for making investments in the local debt market with a view to deepening the country’s capital markets.

As per the new regime, the government has simplified the processes for non-resident companies having no permanent establishment in Pakistan to invest big funds in the stock market and money market by offering simple regime.

According to a press release. the approvals were given at a meeting of the ECC which met at the Cabinet Block with Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh in the chair.

The ECC was briefed on the wheat situation in the country and it was pointed out that while prices were stable in most parts of the country.

The ECC directed the Ministry of National Food Security and Research to sit down with all stakeholders and ensure that the situation does not get out of hands and supply of wheat and flour at regular prices is ensured.

It also considered a proposal by the Ministry of Energy for application of quarterly adjustment notified on July 1, 2019, to the zero-rated industrial consumers.

The ECC also approved proposals submitted by the Ministry of Finance for simplification of tax regime for non-resident companies investing in the local debt market with a view to deepening the country’s capital markets.

The new tax regime as approved by the ECC would apply to the non-resident companies having no permanent presence in Pakistan.