Haj operators: FBR''s proposal to increase minimum tax rejected

The government has rejected a budget proposal of the Federal Board of Revenue (FBR) to increase minimum tax on Haj operators from Rs 5,000 to Rs 10,000 in coming budget (2016-17).
It is learnt that the proposal was floated by the FBR as revenue generation measure in budget (2016-17). Responding to the proposal, policy makers argued that it would not be appropriate to further raise taxes on Haj operators.
In Part-III of the Income Tax Ordinance, a clause namely (72A) was added providing that the provisions of clause (l) of section 21, sections 113 and 152 shall not apply in case of a Hajj Group Operator in respect of Hajj operations provided that the tax has been paid at the rate of Rs 3, 500 per Hajji for the tax year 2013 and Rs 5, 000 per Hajji for the tax year 2014 in respect of income from Hajj operations.