Pakistan withdraws tax amnesties for industrial promotion

Pakistan withdraws tax amnesties for industrial promotion

KARACHI: Pakistan has withdrawn tax amnesties for industrial promotion through Finance Act, 2022 by making certain amendments to the Income Tax Ordinance, 2001,

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Analysts at PwC A. F. Ferguson & Co. explained amendments made through Finance Act, 2022 to Sections 59C, Section 65H and Section 100F of the Income Tax Ordinance, 2001.

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The analysts said that amnesties, introduced vide the Income Tax (Amendment) Ordinance, 2022, with respect to the following investments have been withdrawn with effect from March 2, 2022:-

a) New & existing industrial undertakings – Section 59C;

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b) Industries owned by overseas Pakistanis and resident Pakistanis having declared foreign assets

– Section 65H; and

c) Revival of sick units – Section 100F.

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Through the Finance Act, 2022 certain tax credits for industrial promotion under Section 60C, Section 62 and Section 62A of Income Tax Ordinance, 2001 have also been withdrawn.

Tax credits and deductible allowances in respect of the following, have been withdrawn:-

a) Profit on debt incurred on house financing – Section 60C;

b) Investment in new shares of listed companies, mutual funds or life insurance policies, Sukuk, etc. – section 62; and

c) Purchase of Health insurance policies – section 62A.

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