Tax credit facility demanded

KARACHI: The Pakistan Hosiery Manufactures and Exporters Association (PHMA) has urged federal Finance Minister Asad Umar to include proprietorship and AoPs (association of persons) at par with the company to avoid discrimination to avail tax credit, a statement said on Monday.

In a letter to the federal finance minister, Muhammad Jawed Bilwani, central chairman of PHMA, said that the government under the Finance Act 2010 passed amendment to the Income Tax Ordinance 2001, "Tax Credit for Investment in Industrial Undertaking" Section 65B to encourage companies for investment in balancing, modernisation and replacement of the already installed plant and machinery in an industrial undertaking setup in Pakistan.

Under the prevailing laws of Pakistan and according to the Article 18 "Freedom of Trade, Business or Profession" of the Constitution, every citizen would have the right to enter into lawful trade or business, he added.

Consequently, he said, in Pakistan, the businesspersons engaged into legal business by registering with the authorities concerned as proprietor / business individual, association of persons (AoPs) (under Partnership Act 1932 and Limited Liability Partnership Act 2017) or with the formation of a company under the Companies Act 2017 (previously Companies Ordinance 1984) with the SECP.