Govt may scrap tax exemptions given to industries in far-flung areas
On the suggestion given by the Federal Board of Revenue (FBR), the government has started contemplating withdrawing tax exemptions granted to industries set up in economically backward areas of the country, reported 24NewsHD TV channel on Wednesday.
Quoting sources, the TV channel reported that currently, the industrial units set up in far-flung areas of the country were enjoying 90 percent tax exemption on the prices of machinery, equipment and the plant.
Similarly, the bureau has proposed to the government to take back the tax concessions given to the youth and companies for getting jobs and registration at stock exchanges, respectively.
The FBR has also suggested withdrawing the tax exemption granted to the corporate dairy farming sector.
FBR starts audit of two departments:
The FBR has also started the Withholding Tax audit of Punjab Board of Revenue and Department of Zakat and Usher as it has sought details from both the departments of their budgets and expenditures between 2017 and 2020.
Similarly, the bureau has also directed both these departments to submit the record of the payments made to the contractors during the aforementioned period so that it could be ascertained how much tax was deducted from these payments.
The departments have been instructed to give contractors’ names, their identity cards’ numbers and registration numbers.
Reporter Waqas Azeem