KARACHI: Tax concessions on income in the shape of total allowances available to pilots of any Pakistani airlines have been withdrawn from July 01, 2022.
The tax concessions have been withdrawn through Finance Act, 2022 by amending provisions of Income Tax Ordinance, 2001.
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According to the amendment, tax concessions on total allowances available to pilots of any Pakistani airlines have been withdrawn. Previously, tax concession was available on allowance exceeding the basic pay chargeable to tax at the rate of 7.5 per cent.
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Through the Finance Act, 2022 the tax concession has been abolished on flying allowance of persons included: flight engineers; navigators of Pakistan Armed Forces, Pakistani Airlines or Civil Aviation Authority; Junior Commissioned Officer; Other ranks of Pakistan Armed Forces. Previously tax concession was available on these persons on income taxable at 2.5 per cent as a separate block of income in case allowance does not exceed basic salary.
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Tax concession on the income from profit on debt from investment in federal government securities has also be abolished in case of person other than a banking or insurance company. Previously, the income was subject to the final tax at 15 per cent.
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