ISLAMABAD: Pilots of Pakistani airlines have availed tax concession to the tune of Rs430 million during tax year 2020 on allowances received from their respective airlines.
According to official statistics made available to PkRevenue.com, the pilots of Pakistani airlines are entitled of reduction in tax liability under Clause 1(1AA) of Part 3 of Second Schedule of Income Tax Ordinance, 2001.
The concession is available since 2014 and there is no sunset clause attached to this provision.
The FBR said that total allowances received by pilots of any Pakistani airlines shall be taxed at a rate of 7.5 percent, provided that the reduction under this clause shall be available to so much of the allowances as exceeds an amount equal to the basic pay.
The FBR explained the method for calculation the concession that data extracted from income tax returns and difference between tax liability at the rate of 20 percent (assumed as benchmark rate for the purpose of this clause) and 7.5 percent worked out.