ISLAMABAD: The Federal Board of Revenue (FBR) has granted a number of tax incentives to the film industry from July 1, 2022, to promote the local film industry.

According to an income tax circular issued by the FBR, five years tax exemption has been granted by inserting clause (151) in Part I of the Second Schedule to the Income Tax Ordinance to a person who derives any income from cinema operations, starting from the commencement of cinema operations.

Through the insertion of clause (153) in Part I of the Second Schedule to the Ordinance, the exemption has been granted to profit and gains derived by a resident producer or a resident production house from production of feature films during the period from July 1, 2022, to 30thday of June 2027.

Similarly, exclusion from provisions of section 148 of the Ordinance has been provided through the insertion of Clause (12P) in Part IV of the Second Schedule on the import of machinery and equipment as listed in serial no 32 of Part-I of Fifth Schedule to the Customs Act, 1969 subject to the conditions and limitations specified therein.

Moreover, through the insertion of clause (43H) in Part IV of the Second Schedule, exclusion from the provisions of clause (b) of sub-section (1) of section 153 has been provided to an exhibitor or a distributor of a feature film, as payer, on payment made to a distributor, producer or importer of a feature film.

Copyright Business Recorder, 2022