ISLAMABAD: The Federal Board of Revenue (FBR) on Friday issued the Statutory Regulatory Order (SRO) for granting exemption to the public sector universities from paying income tax.
The Economic Coordination Committee (ECC) of the cabinet in December 2017 had allowed exemption from the levy of minimum tax on public sector universities.
The notification in this connection stated that, “In exercise of the powers conferred by the sub-section (2) of section 53 of the Income Tax Ordinance 2001 and pursuant to the approval of the Economic Coordination Committee of the Cabinet, the board with the approval of federal-in-charge is pleased to direct that the following further amendments shall be made in the second schedule to the said Ordinance namely: In the aforesaid schedule, in part IV, in clause (11A), after sub-clause (xxix), the following new sub-clause shall be added.”
Prior to grant of exemption under this section to public sector universities, the FBR had already allowed exemption to the following:
The provisions of section 113, regarding minimum tax, shall not apply to: (i) National Investment (Unit) Trust or a collective investment scheme authorised or registered under the non-banking finance companies (Establishment and Regulation) rules, (ii) Petroleum dealers, (iii) Hub Power Company Limited (v) companies, qualifying for exemption under clause (132) of part-I of this schedule, in respect of receipts from sale of electricity; (iv) Provincial governments and local governments, qualifying for exemption under section 49 and other government bodies which are otherwise exempt from income tax (vii) Pakistan Red Crescent Society; (viii) Special purpose, non-profit companies engaged in securitising the receivables of provincial governments; (ix) non-profit organisations approved under clause (36) of section II or clause (58) or included in clause (61) of part-I of this schedule; (x) A taxpayer who qualifies for exemption under clause (133) of part-I of this schedule, in respect of income from export of computer software or IT services or IT enabled services.
Moreover, Modaraba companies, Corporate and Industrial Restructuring Corporation (CIRC), The corporatised entities of Pakistan Water and Power Development Authority (WAPDA), First Sukuk Company Limited, Pakistan International Sukuk Company Limited, Second Pakistan International Sukuk Company Limited, LNG terminal operators and LNG terminal owners, China Overseas Ports Holding Company Limited, China Overseas Ports Holding Company Pakistan (Private) Limited, Gwadar International Terminal Limited, Gwadar Marine Services Limited and Gwadar Free Zone Company Limited for a period of 23 years, with effect from the sixth day of February, 2007, companies, qualifying for exemption under clause (126M) of part-I of this schedule, in respect of profits and gains derived from a transmission line project, Third Pakistan International Sukuk Company Limited and start-up as defined in clause (62A) of section 2 had also been given exemption from income tax.