Daily Times

KARACHI: The Federal Board of Revenue (FBR) on Wednesday notified for Shariah-compliant listed companies that the companies with one hundred percent Shariah-compliant investments are only able to avail a tax reduction of 2 per cent.

FBR has made further amendments in the Income Tax Rules 2002, according to which the FBR proposes some new rules in 231H Reduced rate of tax for Shariah compliant companies in terms of Sub-Clause (a) of clause (188) of Part-II of the Second Schedule to the Ordinance. The apex tax collection authority stated that to avail reduced rate of tax in terms of sub-clause (a) of clause (18B) of Part-ll of the Second Schedule to the Ordinance the Shariah-compliant criteria for a company whose shares are traded on a stock exchange, the business of the company should be Halal i.e. it shall not include processing or manufacturing of pork, liquor, non-halal products, pornographic material or any other activity not permitted by Shariah.