KARACHI: The federal government has proposed elimination of exemptions and concessions allowed to allowances and benefits on salary income of seafarers and newspaper employees.
Through the Finance Bill, 2021 a number of amendments have been proposed to the Second Schedule of Income Tax Ordinance, 2001 to withdraw exemptions and concessions.
The bill proposed to withdraw exemption on total income of a salary income of Pakistani seafarer, who is working on Pakistan flag vessel for 183 days or more during a tax year; or working on a foreign flag vessel provided that such income is remitted to Pakistan not later than two months of the relevant tax year through the normal banking channels.
It is also proposed to withdraw exemptions on any special allowance or benefit (not being entertainment or conveyance allowance) or other perquisite within the meaning of section 12 especially granted to meet the expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit.
The finance bill proposed to withdraw tax incentive to any income of a newspaper employee, representing local travelling allowance paid in accordance with the decision of the Third Wage Board for Newspaper Employees constituted under the Newspaper Employees (Conditions of Service) Act, 1973, published in Part II of the Gazette of Pakistan, Extraordinary, dated June 28, 1980.
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