FBR proposed incentives for promotion of industrialization

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KARACHI: Federal Board of Revenue (FBR) has been advised to allow tax credit and allowances for promoting industrialization, growth and job creation.
Pakistan Business Council (PBC) in its proposals for budget 2018/2019, suggested amendments to following sections of Income Tax Ordinance, 2001 for promotion of industrialization:
— Tax Credit on Investment under 65E(1), the PBC recommended inclusion of the term ‘extension, balancing, modernization and replacement of plant’
— Section 23 Initial Depreciation Allowance: Initial depreciation allowance should be restored to 50 percent for plant and machinery and 25 percent for building
— Section 23A Industrial establishment to be set up in specified rural and under-developed areas are allowed favorable depreciation allowances. The list of specific rural & under-developed areas is still to be notified: It is suggested that areas identified as rural or under-developed need to be identified.