FBR’s Tax Credit Formula is Absurd & Unfair: Fawad Chaudhry
Federal Minister for Science and Technology, Fawad Chaudhry, has raised objections on the Federal Board of Revenue’s (FBR) tax credit formula and termed it as absurd.
In a Twitter post, the Minister wrote:
He added that we suffer environmental and infrastructure hazards but tax credit goes elsewhere.
For the unversed, a tax credit is an amount of money that taxpayers can subtract from the income taxes they owe to the government.
A tax credit is normally offered to promote a specific behavior. For instance, a government may grant a tax credit to the auto industry to encourage it to replace gasoline-powered vehicles with EVs.
Recently, the FBR issued the Tax Directory 2018, containing detailed information of all taxpayers during FY 2017-2018.
A provincial breakdown shows that Sindh contributed 44.91% of the total taxes and was the highest tax-paying province in 2018.
Punjab’s share in the total taxes for 2018 was 34.99% followed by Islamabad Capital Territory (ICT) with 14.77%.
Meanwhile, Khyber Pakhtunkhwa (KP) contributed with 3.54% of the total taxes in 2018, Balochistan with 1.67%, and Gilgit Baltistan with 0.12%.