Govt Likely to Impose 29% Income Tax Rate on Exporters

The federal government has proposed to increase the income tax rate for exporters by 1 percent on export proceeds, sources told ProPakistani. Currently, the income tax at the rate of 1 percent is collected at the time of realization of export proceeds from exporters which is their final tax reliability. It is proposed to tax the income of exporters at standard tax rates. The tax rate for companies will be 29 percent and slab rates for individuals and Associations of Persons (AOPs). Alternatively, the income tax rate for exporters is proposed to be enhanced by 1 percent on export proceeds. The estimated revenue impact as a result of this tax increase will be Rs. 125 billion. For live updates on everything about the Federal Budget, visit this link.