Income Tax: NLC claims exemption

FBR insists NLC is liable to pay tax and has approached the Law Division to get its opinion on the issue.

ISLAMABAD:

A row has erupted between the Federal Board of Revenue (FBR) and the National Logistics Cell (NLC) over whether the logistics arm of the government comes under the income tax net.

According to a senior FBR official, NLC has written a letter to the FBR, seeking exemption from income tax payments according to provisions of the Income Tax Ordinance 2001. However, the FBR insists that NLC is liable to pay the tax and has approached the Law Division to get its opinion on the issue. The Law Division’s ruling will decide the matter.

The official said the FBR, in a summary sent to the Law Division, cited not only the income tax ordinance but also clauses of the Constitution to support its case that tax was applicable to NLC. The official said the FBR requested the Law Division to issue a ruling on the dispute.

Published in The Express Tribune, October 9^th, 2011.