President Dr. Arif Alvi has signed an ordinance to implement the withdrawal of corporate tax exemptions and rationalize taxes to comply with the conditionality of the IMF. The promulgation of the ordinance is one of the prior actions for the approval of the $ 500Mn IMF tranche. With the introduction of the ordinance, the decisions will come into effect immediately, which were earlier agreed to be effective from 1st Jul’21. The revenue implication as per ordinance will be for three months and eight days of the tax year 2021. The corporate income tax reforms are in line with recommendations of the IMF, which estimates it will generate revenue of PKR 140Bn annually.
25/3/2021