ISLAMABAD: A tax credit granted to encourage companies for enlistment in stock exchange has been abolished through Tax Laws (Second Amendment) Ordinance, 2021.
Sources in Federal Board of Revenue (FBR) said that Section 65C of the Income Tax Ordinance, 2001 has been abolished through Tax Laws (Second Amendment) Ordinance, 2021.
They said that this concession was granted through Finance Act, 2010. The cost of this credit was Rs357 million during fiscal year 2019/2020.
According to omitted section 65C related to tax credit for enlistment:
(1) Where a taxpayer being a company opts for enlistment in any registered stock exchange in Pakistan on or before the 30th day of June, 2022 a tax credit equal to twenty percent of the tax payable shall be allowed for the tax year in which the said company is enlisted “and for the following three tax years:
Provided that the tax credit for the last two years shall be ten per cent of the tax payable.