Islamabad: The super tax will now be applicable beyond 2020, a news source reported. This extension comes as a consequence of an amendment in the Finance Supplementary Bill, 2019.
The changes introduced in the Finance Supplementary (Second Amendment) Act 2019 (the ‘Act’) indicate that a super tax was levied for the tax year 2015 as per the Finance act 2015 (FA-15). This tax was applicable to all banking firms and companies with taxable profits over PKR 500 million. It continued in operation till tax year 2017.
The bill indicates the tax’s applicability till the year 2020 – with a 1% rate reduction with each passing year. While the tax rate was 0% in 2018, it is 4% in 2019, and 3% & 2% for the tax years 2020 and 2021, respectively.
According to the bill’s details, the tax rate has been set at 4% for banking companies for the four-year time period between 2018 and 2021. Meanwhile, a tax rate of 0% (reduced from 1%) is applicable to other companies for tax year 2020.
In addition to the above details, the Super Tax will now continue beyond tax year 2020 – as per its Section 4B.
The bill exempts income tax collection from any income derived from the National Disaster Risk Management Fund. The Act now also covers Sarmaya-e-Pakistan Limited (a new entry) under its scope.
