- FBR placed framework for tax credits for charitable organisations.
- SC Diamer Bhasha, Mohmand Dams Fund exempted from tax.
- Tax immunity to also apply on SBP, SECP and Fauji Foundation.
ISLAMABAD: Days after the parliament approved Finance Bill 2025-26 for the upcoming fiscal year, it has come to light that the government has incorporated over 50 tax exemptions, including to pension of a former president and his widow, Karandaaz Pakistan, Army Welfare Trust and others, The News reported on Monday.
The Finance Bill 2025-26 is set to be converted into an Act with the assent of the President of Pakistan, Asif Ali Zardari today.
The Federal Bureau of Revenue (FBR) had placed a regulatory framework with the provision of tax credits to charitable organisations, and non-profit organisations (NPOs), but now facilitated them more by granting tax exemptions.
The Bill approved by parliament has added to the list of those organisations which enjoyed tax exemptions.
It included tax exemption on pension of a former president and his widow, State Bank of Pakistan (SBP) and SBP Banking Services Corporation, FBR Foundation, Pakistan Council of Scientific and Industrial Research, Pakistan Water and Power Development Authority established under the Pakistan Water and Power Development Authority Act, 1958 (WP Act XXXI of 1958) and includes Pakistan Agricultural Research Council, corporatised entities of Pakistan Water and Power Development Authority from the date of their creation up to the date of completion of the process of corporatisation i.e., till the tariff is notified, Prime Minister’s Special Fund for victims of terrorism, Chief Minister’s (Punjab) Relief Fund for Internally Displaced Persons (IDPs) of NWFP, National Disaster Risk Management Fund, Supreme Court — Diamer Bhasha and Mohmand Dams — Fund,
The tax exemption will also apply to the Prime Minister’s COVID-19 Pandemic Relief Fund-2020, National Endowment Scholarship for Talent (NEST), Securities and Exchange Commission of Pakistan, Privatisation Commission of Pakistan, Fauji Foundation, Audit Oversight Board, SC Water Conservation Account, Balochistan Education Endowment Fund (BEEF), Army Welfare Trust, Public Private Partnership Authority for tax year 2022 and subsequent four tax years, the Prime Minister’s Relief Fund for Flood, Earthquake and other Calamities with effect on and from the 5th August, 2022, Export-Import Bank of Pakistan.
Furthermore, the relaxation on tax also includes the Deposit Protection Corporation established under sub-section (l) of section 3 of Deposit Protection Corporation Act, 2016 (XXXVII of 2016), Wapda First Sukuk Company Limited, Pakistan Domestic Sukuk Company Ltd, Wapda on issuance of twenty billion rupees TFC’s/SUKUK certificates for consideration of Diamer Bhasha Dam Projects, Wapda Second Sukuk Company Limited, Pakistan International Sukuk Company Limited, Second Pakistan International Sukuk Company Limited, Third Pakistan International Sukuk Company Limited, Islamic Naya Pakistan Certificates Company Limited (INPCCL), Pakistan Mortgage Refinance Company Limited.; the Pakistan Global Sukuk Programme Company Limited, Shaheed Mohtarma Benazir Bhutto Institute of Trauma, Karachi, National Memorial Bab-e-Pakistan Trust, Pakistan Poverty Alleviation Fund, National Rural Support Programme, Karandaaz Pakistan from Tax Year 2015 onwards, the Institutions of the Aga Khan Development Network (Pakistan) as contained in Schedule 1 of the Accord and Protocol, dated November 13, 1994, executed between the government of Pakistan and the Agha Khan Development Network, International Finance Corporation established under the International Finance Corporation Act, 1956 (XXVIII of 1956) and provided in section 9 of Article VI of Articles of Agreement 1955 as amended through April 1993,
This also includes Asian Infrastructure Investment Bank and persons as provided in Article 51 of Chapter IX of the Articles of Agreement signed and ratified by Pakistan and entered into force on the 25th December, 2015, Saarc Energy Centre, the Asian Development Bank established under the Asian Development Bank Ordinance, 1971 (IX of 1971), International Islamic Trade Finance Corporation, Islamic Corporation for Development of Private Sector, ECO Trade and Development Bank, the Islamic Chamber of Commerce and Industry under the Organisation of Islamic Conference (OIC).
“Commission on Science and Technology for Sustainable Development in the South (COMSATS) formed under International Agreement signed on 5th October, 1994; Saarc Arbitration Council (SARCO) and International Parliamentarians’ Congress.”
And lastly, the list features Army Officers Benevolent Fund/Benevolent Fund/Bereaved Family Scheme: Any monetary award received from the Federal or Provincial Government or from a Public Office holder by a sportsperson winning a medal in international Olympic Games representing Pakistan — provided that this clause shall be applicable from tax year 2025″.
