The minimum tax rates for the tax year 2022 are under the First Schedule of the Income Tax Ordinance, 2001.
The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.
Following are the minimum tax rates under Section 113 of Income Tax Ordinance, 2001:
01. The tax rate shall be 0.75 per cent on the following:
(a) Oil marketing companies, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited (for the cases where annual turnover exceeds rupees one billion.)
(b) Pakistani International Airlines Corporation; and
(c) Poultry industry including poultry breeding, broiler production, egg production and poultry feed production;
02. The tax rate shall be 0.5 per cent on the following:
(a) Oil refineries
(b) Motorcycle dealers registered under the Sales Tax Act, 1990
03. The tax rate shall be 0.25 per cent on the following:
(a) Distributors of pharmaceutical products, fast moving consumer goods and cigarettes;
(b) Petroleum agents and distributors who are registered under the Sales Tax Act, 1990;
(c) Rice mills and dealers;
(d) Tier-1 retailers of fast moving consumer goods who are integrated with Board or its computerized system for real time reporting of sales and receipts;
(e) Person’s turnover from supplies through e-commerce including from running an online marketplace as defined in clause (38B) of section 2.
(f) Persons engaged in the sale and purchase of used vehicles; and
(g) Flour mills
04. The tax rate shall be 1.25 per cent in all other cases
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