ISLAMABAD (Eshfak Mughal):- The Federal Board of Revenue (FBR) has granted Rs.64 billion tax exemptions to the Electric Power Generation Project and Collective Investment Schemes and REIT Schemes  for next fiscal year on their income and profit.

According to the document of Federal Board of Revenue, the government has proposed tax exemption worth of Rs37.45 billion on Profits and gains derived by a taxpayer from an electric power generation project set up in Pakistan on or after the 1st day of July, 1988, subject to following conditions:

Owned and managed by a company formed for operating the said project and registered under the Companies Ordinance, 1984 (XLVII of 1984), and having its registered office in Pakistan;

Not formed by the splitting up, or the reconstruction or reconstitution, of a business already in existence or by transfer to a new business of any machinery or plant used in a business which was being carried on in Pakistan at any time before the commencement of the new business.  

Owned by a company fifty per cent of whose shares are not held by the Federal Government or Provincial Government or a Local Government or which is not controlled by the Federal Government or a Provincial government or Local govt provided further that exemption under this clause shall also be available to the expansion projects of the existing Independent Power Projects already in operation.

According to the document, any income derived by a Collective Investment Scheme or a REIT Scheme, if not less than 90 percent of its accounting income of that year, as reduced by capital gains whether realized or unrealized, is distributed amongst the unit or certificate holders or shareholders as the case may be. The impact of this tax exemption is calculated Rs26.3 billion for next fiscal year.  

The government has also offered Rs.816 million tax exemptions on profit and gains derived by LNG Terminal Operators and Terminal Owners.  It has also offered Rs2,72 billion tax exemptions on profit and gains from Coal mining projects in SIndh, supplying coal exclusively to power generation projects.

The government has also offered Rs647 million tax exemptions on any income derived by the Federal Government Employees Housing Authority and Naya Pakistan Housing and Development Authority for the tax year 2020 and the following four tax years. 

The government has also granted tax exemptions on Income of a special purpose vehicle, income of non-residents from investment in OGDCL exchangeable bonds issued by the Federal Government and Profit and gains derived by Bosicor Oil Pakistan Limited.

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By adminmy

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