Source tax remains unchanged

The source tax on export proceeds has remained unchanged in the proposed budget for the upcoming fiscal despite the fact that exporters, including readymade garment industry, have been demanding the lowering of the rate.

Neither the finance bill nor the budget speech has mentioned any change regarding the rate.

According to the income tax ordinance, a 1.0 per cent source tax on the export proceeds is applicable.

Income tax on export proceeds of goods manufacturing in Leadership Energy and Environmental Design (LEED) Certified factories would be 10 per cent, according to a National Board of Revenue (NBR) statutory regulatory order (SRO) issued on May 23.

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