The government could amend the Income Tax Ordinance through the Finance Act 2022 to plug a loophole which is often exploited by the rich Pakistanis to avoid tax payment, according to sources in the Federal Board of Revenue (FBR). During the past few years, the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Tehreek-e-Insaf (PTI) governments brought substantial changes to the Income Tax Ordinance 2001 aimed at improving tax recovery from abroad. In the budget, the government has also proposed 1% capital value tax on the movable and immovable assets abroad. The proposed changes may still exclude one capital asset under self-occupation owned by the resident person from the deemed income tax. Sources said that the finance minister considered the options to again lower the advance income tax on mobile phone calls amid opposition by the FBR.

Source: The Express Tribune June 24, 2022 09:00 UTC