KARACHI: The Federal Board of Revenue (FBR) has granted tax exemption worth Rs48.51 billion to the central bank on its income during the fiscal year 2020/21.
According to the official documents made available to the BOL News on Tuesday, the tax authorities extended the exemption of Rs48.51 billion on the total income of the State Bank of Pakistan.
The FBR officials said the SBP had been granted a complete income tax exemption under clause 66 of the Second Schedule of the Income Tax Ordinance, 2001. The official also said the tax exemption under this clause was available to the State Bank of Pakistan and its subsidiary SBP Banking Services Corporation.
The central bank earns a significant non-tax revenue for the national exchequer. The profit of the SBP has been estimated at Rs620 billion for the fiscal year 2020/21. The estimated profit for the fiscal year 2021/22 has been estimated at Rs650 billion.
The FBR officials said besides the above exemption, another arm of the SBP, i.e., Deposit Protection Corporation has also availed of Rs4.37 billion as income tax exemption during the fiscal year 2020/21. These exemptions are also part of the tax collection but such amounts never become part of the actual figures, they added.
Under the Income Tax Ordinance, 2001, several government entities are exempted from income tax; however, some others are subject to tax collection and deduction. During the outgoing fiscal year, the FBR allowed around Rs448 billion as exemption on income of different classes of taxpayers.
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