Govt decides to promulgate an ordinance to abolish income tax exemption

According to details, the federal government has decided to bring an ordinance to abolish income tax exemptions in various sectors on the terms of the International Monitoring Fund (IMF), while the procedure for bringing the Presidential Ordinance has been completed.

The federal cabinet has approved the ordinance through summary circulation. The federal cabinet has approved the summary for the presidential ordinance to abolish income tax exemption.

The cabinet had approved the bill but was unable to pass it by the parliament due to lack of time.

It is pertinent to mention here that the government has to inform IMF about the abolition of income tax exemption as the board decision will take place likely on March 24 for approving and releasing the third tranche of $500 million.

The approval of the third tranche related to $6 billion extended fund facility is subject to various conditions to be met by Pakistani authorities.