ISLAMABAD: Federal Board of Revenue (FBR) faced revenue shortfall due to 100% tax exemption on shipping services to Chinese companies, it is learnt here.
Official sources told Customs Today that 100% tax exemption to Chinese shipping companies on shipping services announced under the Chine-Pakistan Economic Corridor (CPEC).
Meanwhile, the government has already given tax exemption to the Chinese state-orientated and private banks on the loan provided for the development projects in Pakistan which is causing a revenue shortfall to the country.
Sources further said that benefits of tax exemption on the services by shipping companies will be only one-sided because Pakistani companies will not be used for export to China.
Therefore, the board is facing pressure from the tax authorities who suggested the imposition of 25% of concessional tax which will give handsome revenue to the country sources added.
It is also important to highlight here that under the CPEC, the Pakistani ports and land routes will be used for decades while the country will not get any tax from these companies which will cause a revenue shortage.
