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ISLAMABAD: Prime Minister Imran Khan has approved the introduction of the Income Tax (Second Amendment) Bill 2021 in the National Assembly (NA) next week.
According to media reports, the second Amendment aimed to withdraw around 80 income tax exemptions and reform the tax laws to meet a prior action for the revival of the $6 billion International Monetary Fund (IMF) program.
the bill seeks to streamline the tax regime for non-profit organizations, a listing of firms in the stock market, exemptions for oil refineries, special economic zones (SEZs) being set up under the China-Pakistan Economic Corridor and the Independent Power Producers (IPPs).
Although some exemptions, including depreciation grants for the oil exploration and production companies and refining minerals, would continue.
It is worth mentioning here that the IMF has asked Pakistan to withdraw income tax exemptions worth Rs140 billion through new legislation. However, the exact quantum can only be determined once the government officially lays the bill in the National Assembly.
Recently Federal Minister for Finance and Revenue, Dr Abdul Hafeez Shaikh has said that Pakistan’s agreement with the International Monetary Fund (IMF) will not only help boost exports but also economic growth.
Dr Shaikh had earlier said the staff-level agreement between IMF and Pakistan would help improve exports and investments and lead the country towards economic growth. Hafeez Shaikh said owing to this agreement, investors from across the globe and capital markets would be attracted towards Pakistan.
The finance minister said PM Khan had only one interest that was to make Pakistan prosperous and increase its respect on the globe and added it was the main factor that distinguished the PTI and its leadership from other parties.
