President Arif Alavi has issued the Tax Laws Amendment Ordinance 2021 with the abolition of tax exemption, the government will get revenue of Rs. 150 billion.
The ordinance includes more than 75 tax amendments which will come into force immediately.
Under the Tax Laws Amendment Ordinance 2021, tax exemptions on various businesses have been abolished through 75 amendments and the ordinance will come into force immediately. The government will get Rs 150 billion from the abolition of tax exemptions.
According to the ordinance, Shaukat Khanum Trust, Sharif Trust, Alamgir Welfare Trust have been given tax exemption while 62 institutions have been given tax credit facility.
The ordinance stipulates that NTNs or business cards must be displayed at business locations, fines will be levied for non-displaying NTNs, tax evaders will be fined for underestimating income, and underestimated income. A penalty of 50% of the tax due will be levied, a fine of Rs 5,000 will be levied for not posting the tax number on the shop while a fine of Rs 5,000 will be levied for non-submission of income tax returns.
According to the presidential ordinance, the tax exemption for Thar Mining Company and Fresh Graduates has been withdrawn, the profits of Libya Foreign Investment Company and the income tax exemption on Saudi Pak Industrial and Agricultural Investment Company have been abolished.
Under the ordinance, new oil refineries will be exempted only till December 31, 2021. From January 1, new oil refineries will be taxed. Income tax has been imposed on private power plants for July 1, 2021. Income on textbook publishing boards Tax has been imposed.
According to the amended ordinance, the tax exemption received by the PCB and all sports organizations has been converted into credit, the tax exemption for the film industry has also been withdrawn.