The new proposed Finance Amendment Bill 2021 which is scheduled to be brought before the Parliament would abolish 80 income tax exemptions / reduced rates from the Income Tax Ordinance 2001.
The Federal Board of Revenue (FBR) has reviewed different schedules including exemption schedule and reduced rates schedule of the Income Tax Ordinance 2001. A total of 80 income tax exemptions and reduced rates have been picked for possible withdrawal through the proposed Finance Amendment Bill 2021.
The reduced/concessionary rates are expected to be brought equal to the existing tax slabs. In addition, investment credits and tax credits are expected to be introduced, which will be available for special circumstances and areas such as special economic zones.
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