Tax credit for final, minimum regimes may be withdrawn

ISLAMABAD: The tax authorities may withdraw tax credit available to taxpayers falling in final and minimum tax regimes, sources in Federal Board of Revenue (FBR) said.

The sources said that the Large Taxpayers Unit (LTU) Karachi has submitted its proposals for budget 2020/2021 and recommended withdrawal of tax credit for final tax and minimum tax regimes.

The sources said that the elimination of tax credit likely to generate Rs5 billion during the next fiscal year.

The LTU Karachi suggested amendment in Section 65B, 65D and 65E of Income Tax Ordinance, 2001 to withdraw tax credit for taxpayers falling in minimum tax and final taxation.

The LTU Karachi said that allowing tax credits against minimum tax and final taxes payable under the Ordinance is against the principal of fairness and final tax regime.

It further said that the withdrawal of tax credit to such taxpayers would help the revenue body to get additional Rs5 billion during the next fiscal year.

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