Tax Book 2023

Income From Business Chapter- 09

18. REDUCTION IN TAX LIABILITY [PART III OF SECOND SCHEDULE TO THE ITO, 2001]

CLAUSE HEADING^ PARTICULARS OF EXEMPTION^

( 2 )

Currency

devaluation /

revaluation for

petroleum and

mineral

Business

This clause has been omitted by Finance Act, 2021.

( 4 )

Old and used

automotive

vehicles

In respect of old and used automotive vehicles, tax under section 148 shall

not exceed the amount specified in Notification No. S.R.O. 577(I)/2005,

dated the 6th June, 2005.

(7)

Foreign Film

Makers This clause has been omitted by Finance Act, 2021.^

(8)

Companies

deriving

income from

Film Making

This clause has been omitted by Finance Act, 2021.

( 9 )

Profits and

gains from low

cost housing

projects

The tax payable on profits and gains derived by a person from low

cost housing projects shall be reduced by 50%. The reduction in tax

liability under this clause shall apply to such project which is—

(a) owned and managed by a company formed for operating the

said project and registered under the Companies Act, 2017

and having its registered office in Pakistan; and

(b) 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; and

(c) a low cost housing project under which the maximum sale price

of a single housing unit is Rs. 2,500,000.

Provided that exemption under this clause shall continue to

remain available to such projects which commence on or before

the 30th day of June, 2024.

(9B)

Profits and

gains from low

cost housing

projects

The tax payable on the income, profits and gains of projects of ‘low cost

housing’ developed or approved by Naya Pakistan Housing &

Development Authority (NAPHDA) or under the Ehsaas Programme shall

be reduced by 90%.

Provided that exemption under this clause shall continue to remain

available to such projects which commence on or before the 30th day of

June, 2024.

(17)

Tax payable on

income &

profits by

cotton ginners

The tax payable by cotton ginners on their income and profits shall not be

more than sum of 1% of their turnover from cotton lint, cotton seed, cotton

seed oil and cotton seed cake:

Provided that the tax so payable shall be final tax in respect of their cotton

ginning and oil milling activities only.