KARACHI: Textile industry has asked the Federal Board of Revenue to introduce 50 percent initial depreciation allowance rate for plants and machinery as was the case prior to the Finance Act, 2014.
In its budget proposals 2017-18, it further recommended that the initial depreciation allowance for building should also be restored to 25 percent as was the case prior to the Finance Act, 2014.
Whereas for the export sector the tax credit under Section 65B of Income Tax Ordinance, 2001 ought to be doubled for cases whose exports are over 80 percent of their total turnover so that instead of initial depreciation allowance they are entitled to higher tax credit.
Giving rationale for the proposals, the industry said that it would promote industrialization in the country. The government should facilitate the investors to invest in the new projects as well as expansion of existing industrial concerns.
