ISLAMABAD: The government has introduced two percent tax reduction for Shari’ah-compliant-listed companies through Finance Act 2016.
In a statement, Security and Exchange Commission of Pakistan (SECP) said that tax rebate is part of reforms being introduced for the elimination of Riba and promotion and development of the Islamic capital market.
The screening criteria to eligible for the tax rebate will be approved by the State Bank of Pakistan, Security and Exchange Commission of Pakistan and Federal Board of Revenue.
The tax incentive will attract new listings of companies on the Pakistan Stock Exchange and add depth to the market. It reveals that eight companies can immediately qualify the criteria for Shariah compliance and avail two percent tax savings.
Another six companies can also easily become eligible for the tax rebate relocated to Shariah compliant modes of financing and investments.
