Mohammad Arshad Islamabad
The federal government has given a go-ahead to Finance Division and Federal Board of Revenue to withdraw income tax exemptions given to various sectors.
At present the tune of income tax exemptions is around Rs 140 billion. In this regard, the government intends to promulgate an presidential ordinance.
However, since the promulgation of presidential ordinance the concerned departments have been directed to take necessary measures to avert any kind of reaction from those sectors.
The procedure for introducing a presidential ordinance to abolish income tax exemption of Rs140 billion has been completed and a summary in this regard has been approved by the federal cabinet.
The federal cabinet has approved the ordinance through a summary circulation, adding that the bill was not submitted to the Parliament for approval due to lack of time.
In this regard, the government will have to increase the electricity prices twice on account of fuel adjustment before December this year and the government would collect a revenue tuned to billions of rupees by increasing the price of electricity.
According to well placed sources, the Economic Coordination Committee (ECC) will discuss the issue of payments on account of additional subsidies to the various sectors in its meeting scheduled to be held on next Wednesday and decision on this issue is expected within the current month.
According to sources an increase of Rs 3 per unit price of the power will be made in next two quarters of the financial year.
ECC had taken up the issue of issuance of subsidy for the power sector for the fiscal year 2020-21 in its previous meeting so at least six summaries would be presented before the committee in coming meeting.