They added that the FBR and the IMF technical staff were engaged in finalising the tax exemptions and income tax credits that could be withdrawn through the new legislation. IMF officials and Pakistani authorities were discussing clause-by-clause the corporate income tax exemptions, said the sources. FBR sources said that the authorities were discussing with the IMF the corporate income tax exemptions, tax credits and certain exemptions available under Fifth Schedule of the Income Tax Ordinance to oil and gas exploration and production companies. In FY20, the cost of tax exemptions had been estimated at Rs1.15 trillion by the FBR. Sources said that all the income tax exemptions would not be withdrawn.

Source: The Express Tribune November 21, 2020 05:15 UTC