Incentive Data

Reduced rate of Income Tax @ 1%.

INCOME TAX ORDINANCE, 2001

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CHAPTER X

PROCEDURE

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PART V

ADVANCE TAX AND DEDUCTION OF TAX AT SOURCE

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Division III

Deduction of Tax at Source

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154.  Exports.

(3) Every banking company shall, at the time of realisation of the proceeds on account of a sale of goods to an exporter under an inland back-to back letter of credit or any other arrangement as prescribed by the [Board], deduct tax from the amount of the proceeds at the rate specified in Division IV of Part III of the First Schedule.

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(3A) The Export Processing Zone Authority established under the Export Processing Zone Authority Ordinance, 1980 (VI of 1980), shall at the time of export of goods by an industrial undertaking located in the areas declared by the Federal Government to be a Zone within the meaning of the aforesaid Ordinance, collect tax the rate specified in Division IV of Part III of the First Schedule.

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 THE FIRST SCHEDULE

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PART III

DEDUCTION OF TAX AT SOURCE

 

Division IV

Exports

 

  1. The rate of tax to be deducted under sub-sections (1), (3), (3A), (3B) or (3C) of section 154 shall be 1% of the proceeds of the export.

Source:

Section (1), Division IV, Part III, First Schedule, under Section 154 sub section (3A) , Division III, Part V of Chapter X, of Income Tax Ordinance 2001

 

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