The Federal Board of Revenue (FBR) has exempted income tax on profits and gains of the industrial units set up in the Tax Free Zone of the Larkana Industrial Estate (LIE) during July 1, 2008 to June 30, 2013. The FBR has amended Second Schedule of the Income Tax Ordinance, 2001 through a SRO 741(I)/2008 issued on Tuesday.
According to FBR, a package for the progress and development of Larkana was approved along with other projects in Prime Minister''s meeting held on June 5, 2008. It was decided to declare Larkana Industrial Estate as Tax Free Zone for a period of 10 years. For the implementation of the decision, it has been decided to insert a new clause (126C) in Part-I of Second Schedule of Income Tax Ordinance, 2001 vide SRO 741(1)/2008.
Under the new clause of Second Schedule, "Profits and gains derived by a taxpayers from an industrial undertaking set up in Larkana Industrial Estate (LIE ) between July 1, 2008 and June 30, 2013, for a period of ten years beginning with the month in which the industrial undertaking is set up or commercial production commenced, whichever is the later.
Exemption under this clause shall apply to an industrial undertaking which is owned and managed by a company registered under the Companies Ordinance 1984 (XLVII of 1984) and formed exclusively for operating the said undertaking," notification added.