Faisalabad :
The government has decided to reduce the holding tax for steel distributors, dealers and sub-dealers from 4.5 per cent to just 0.25 per cent, despite the huge debt burden on the country. A proposal to abolish 1.25% income tax for manufacturers is also under consideration.
According to media reports, the federal government has decided to exempt a financial sector firm from income tax and reduce tax liabilities for the steel and mobile phone manufacturing sectors. An ordinance has proposed tax relief for some sectors. Yes, this amendment ordinance is in the process of approval. The proposed purpose of this ordinance was to give NADRA access to taxpayer data but now this amendment ordinance is being used to achieve other policy objectives.
The Federal Board of Revenue has suggested that the gross income of Pakistan Mortgage Refinance Company Limited be exempted from income tax. Against income tax reforms, Pakistan Mortgage Refinance Company Limited was among the institutions which were exempted from income tax exemption under IMF conditions.
According to sources, the government has decided to reduce the holding tax for steel distributors, dealers and sub-dealers from 4.5 per cent to just 0.25 per cent, as well as the income tax rate for the steel sector business chain. It has been decided to reduce it from 1.25 per cent to 0.25 per cent, while a proposal to abolish 1.25 per cent income tax for mobile phone manufacturers is also being considered.
