FBR estimates additional revenue of Rs2 billion through changes in super tax

FBR estimates additional revenue of Rs2 billion through changes in super tax

ISLAMABAD: Federal Board of Revenue (FBR) has estimated additional revenue of Rs2 billion through proposed changes in law related to super tax.

The changes have been introduced to Section 4B of Income Tax Ordinance, 2001 through Finance Bill 2019.

The FBR in explanation to the Finance Bill said that presently brought forward depreciation and business losses are excluded while computing income for calculating liability of super tax.

However, such losses are not excluded in the case of banking, insurance, oil and mineral exploration companies.

In order to ensure similar tax treatment, brought forward business and depreciation losses have been excluded from income computed to calculate super tax in the case of the abovementioned sectors.

FBR sources said that Large Taxpayers Unit (LTU) Karachi had submitted its proposals related to super tax with estimated revenue generation of Rs2 billion.

The LTU Karachi in its proposals said that the proposed amendment would bring uniform chargeability of super tax to all taxpayers including taxpayers falling within the purview of Fourth, Fifth, Seventh and Eighth Schedules of Income Tax Ordinance, 2001.

Fourth Schedule mainly deals with Insurance companies.

Fifth Schedule is related to exploration and production companies.

Seventh Schedule is about banking companies.

While Eighth Schedule covers capital gains and National Clearing Company Pakistan Limited (NCCPL).

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