recorder report

ISLAMABAD: The Federal Board of Revenue (FFBR) has withdrawn certain tax exemptions for provincial governors and ministers of the federal government under the Finance Supplementary (Amendment) Act, 2018.

The FBR has issued circular 6 of 2018 here on Wednesday to explain the Finance Supplementary (Amendment) Act, 2018.

In keeping with the government's aim of implementing a fair and equitable taxation system, the Finance Supplementary (Amendment) Act, 2018 envisages the withdrawal of certain tax exemptions previously available to provincial governors and ministers of the federal government, the FBR said.

These included exemption available to perquisite representing free of rent residential accommodation provided by the government to provincial governors has been withdrawn. [Clause (51) of Part-I of the Second Schedule to the Ordinance].

Secondly, exemption available to perquisite(s) representing free conveyance provided and entertainment allowance granted by the government to provincial governors has been withdrawn. [Clause (52) of Part-I of the Second Schedule to the Ordinance].

Thirdly, exemptions available to perquisites representing rent free accommodation (in instances where value thereof exceeds 10% of the basic salary of the ministers concerned), house rent allowance (paid by the government in lieu of rent free accommodation exceeding Rs 550,000 per month), free conveyance and sumptuary allowance granted by the government to the ministers of the federal government have been withdrawn. [Omission of Clause (53) of Part-I of the Second Schedule to the Ordinance].