I wish to bring into light some proposals for the forthcoming budget so that appropriate steps may be taken accordingly in the Income Tax Ordinance, 2001.
The provision of sub section (1d) of section 151 of I.T. Ord '01 be so amended that the profit paid by the corporate bodies besides banking companies be also subjected to withholding tax as a final discharge of their tax liability.
This will at one hand simplify the preparation of annual income tax return documents while on the other hand help the state exchequer to increase the collection of taxes.
This is also necessary to help the directors of the companies to provide funds to their organisations for the smooth cash flow and funding for expansion and balancing the modernisation process of the corporate sector which is the demand of the day. The corporate sector required funds for balancing, modernisation and replacement of its infrastructure to increase the productivity.
Their cannot be two opinions on the fact that if section 151(1) (d) is amended in this direction then the managers of the industry will depend much less on banks and other financial institutions for seeking financial help to upgrade and modernise their units because their directors will be in a position to provide the required funds to their units. The high ups of the FBR are requested to kindly look into the matter and do the needful at the earliest possible.