A summary approved by the federal cabinet on Friday, to immediately withdraw Rs140 billion worth of income tax exemptions in order to keep one-month-old staff-level agreement with the International Monetary Fund (IMF).
Sources confirmed that federal government enforce Tax Laws Ordinance 2021 and the bill will not be further delayed due to the lack of time issue.
Federal Board of Revenue chairman earlier announced that instead of July 1 the tax exemptions will be withdrawn with immediate effect.
In order to secure the nod, Prime Minister Imran Khan had already removed the requirement of first securing the approval of the Cabinet Committee on Legislative Cases (CCLC) before placing a legislative business-related summary before the cabinet for approval.
On March 9, the federal cabinet had approved the Income Tax (Second Amendment) Bill 2021 and allowed to lay it in the National Assembly as part of the IMF condition. However, now an ordinance will be promulgated by bypassing parliament and the name of the legal instrument has also been changed according