The Tax Laws (Second Amendment) Ordinance, 2021 has allowed tax credit of 25 percent on capital investment on an industrial undertaking. According to details, a new Section 65G has been introduced to Income Tax Ordinance, 2001 through amended ordinance, which says: “(1) When making certain eligible capital investments as specified in sub- section (2), the eligible taxpayers defined in sub-section (3) shall be allowed to take an investment tax credit of twenty-five percent of the eligible investment amount, against tax payable under the provisions of this Ordinance including minimum and final taxes. The tax credit not fully adjusted during the year of investment shall be carried forward to the subsequent tax year subject to the condition that it may be carried forward for a period not exceeding two years. “(2) For the purposes of this section, the eligible investment means investment made in purchase and installation of new machinery, buildings, equipment, hardware and software, except self-created software and used capital goods. “(3) For the purpose of this section, eligible person means: (a) green field industrial undertaking as defined in clause (27A) of section 2 engaged in; (i) the manufacture of goods or materials or the subjection of goods or materials to any process which substantially changes their original condition; or (ii) ship building.