FBR withdraws Withholding Taxes

On October 10, Federal Board of Revenue (FBR) has issued an official statement that notifies exemption from payment withholding taxes. This has been the major demand from export oriented industries of the country. The notification says in exercise of the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance. In the aforesaid Schedule, in Part IV, for the clause (66), the following shall be substituted, namely:- "(66) The provisions of section 235 shall not be applicable to the taxpayers who fall under the zero rated regime of sales tax and registered with sales tax as exporters or manufacturers of carpets; leather and articles thereof including artificial leather footwear; sports goods; and textile and articles thereof."

Federal Board of Revenue