Karachi
Tax practitioners have suggested the government to abolish alternative corporate tax (ACT) and reintroduce income tax credit on registered sales in the upcoming budget for the fiscal year 2021-22 to cut cost of doing business and increase the tax base.
The Karachi Tax Bar Association (KTBA) in its recommendations for budget 2021-22 submitted to the Federal Board of Revenue (FBR) said that as per section 113C of the Income Tax Ordinance, 2001, tax payable by company subject to tax under Division-II Part-I of 1st Schedule or minimum tax shall be higher of corporate tax or ACT.
The KTBA said that it is increasing the cost of doing business and regressive taxation. —TLTP
