FPCCI seeks tax credit facility

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Federal Board of Revenue (FBR) to extend tax credit facilities to the investment made in factory building and other manufacturing-related infrastructure, a statement said on Monday.

FPCCI acting president Syed Mazhar Ali said that as per the section 65E of the Income Tax Ordinance 2001, tax credit is admissible / restricted to investment made in plant and machinery and undertaking of a new project, which also involves investment in factory building and development of manufacturing-related infrastructure. “Therefore, such investments should also be made eligible for the tax relief.”

The federation has also sought two-year extension in the validity of the tax credit scheme to June 30, 2021. “Tax credit scheme, since its inception in 2011, has been providing better results and its further continuation would help realise government’s aim of industrialisation, a prerequisite to achieving sustainable economic growth and self-sufficiency,” Ali added.