Lahore 24°C
Karachi 29°C
Islamabad 20°C
Rationalization of rates of withholding taxes in the nature of minimum tax
(1) The Federal Government may reduce the rate of any of the withholding taxes in the nature of minimum tax as given in First Schedule of this Ordinance, other than minimum tax chargeable under section 113 of this Ordinance, by one percent on the basis of economic viability in cases of persons or class of persons, subject to such restrictions and limitations as the Federal Government may specify.
(2) The Federal Government shall place before the National Assembly all amendments made in rates of withholding taxes in the First Schedule, in a financial year under this section.
(3) In this section, the term economic viability includes an anticipated net loss of business income due to tax burden either directly or indirectly due to non-availability of resources to maintain or increase efficiency of the business as certified by a chartered accountant firm listed as Category A, as per rating issued by the State Bank of Pakistan.
(2) The Federal Government shall place before the National Assembly all amendments made in rates of withholding taxes in the First Schedule, in a financial year under this section.
(3) In this section, the term economic viability includes an anticipated net loss of business income due to tax burden either directly or indirectly due to non-availability of resources to maintain or increase efficiency of the business as certified by a chartered accountant firm listed as Category A, as per rating issued by the State Bank of Pakistan.
Amendment history (8)
- Inserted by the Finance Act, 2016.
- Inserted by the Finance Act, 2015.
- Full stop substituted by the Finance Act, 2017.
- Added by the Finance Act, 2017
- Section 53A inserted by the Finance Act, 2026.
- The colon substituted by the Finance Act, 2008.
- Proviso omitted by the Finance Act, 2008. The omitted proviso
- Sub-section (2) omitted by the Finance Act, 2003. Omitted sub-section (2)
Amendment notes captured from the source page(s); they may include changes to neighbouring provisions.
Source FBR PDF page 107
Unofficial reference, compiled from the FBR’s consolidated Income Tax Ordinance 2001 (amended up to 30 June 2026). Provided for general information only — not an official FBR publication and not legal or tax advice. Always verify against the official FBR text before relying on it for filing or any decision.