Govt eyes ordinance to rescind tax exemptions for various sectors

• Federal govt decides to introduce ordinance to abolish tax exemption.
• The procedure for introducing a presidential ordinance to abolish the income tax exemption of Rs140 billion has been completed and a summary was issued.
• Sources say the ordinance was approved through a summary circulation as there was no time to pass a bill in the parliament.

ISLAMABAD: The federal government plans to introduce an ordinance to abolish income tax exemptions given to various sectors, said sources on Friday.

The procedure for introducing a presidential ordinance to abolish income tax exemption of Rs140 billion has been completed and a summary in this regard has been approved by the federal cabinet, revealed sources.

Sources further said that the federal cabinet has approved the ordinance through a summary circulation, adding that the bill was not submitted to the Parliament for approval due to lack of time.

The federal government has to inform the International Monetary Fund (IMF) before March 24 about the abolition of income tax exemption, sources added.