Floods devastation

Source: The News

Date: August 31, 2010

ISLAMABAD: The Federal Board of Revenue (FBR) has forwarded three different proposals to the government for generating additional revenue of Rs 130 billion, including imposing 10 percent flood surcharge on profits of 7,000 corporate sector companies having earned Rs 642 billion profit in last financial year.

Pakistan’s tax authorities have proposed to impose certain percentage of tax on profits of around 7,000 corporate sector companies and the collected amount should be utilised for reconstruction work in flood-affected areas.

The corporate sector companies can be convinced to utilise the money by themselves for reconstruction work of specific areas by giving them recognition. “We think that no one will oppose any such proposal when he knows that the money is being utilised to provide relief to the flood-

affected people,” said the official.

The FBR has offered two more proposals: to impose 5-10 percent surcharge on tax liabilities of those who earned more than Rs 300,000 per

annum. The taxable ceiling of Rs 300,000 is already exempted from the tax.

For more details: http://thenews.com.pk/31-08-2010/ethenews/t-271.htm