In a bid to enhance competitiveness and bolster foreign currency earnings, the government has rolled out tax benefits for three key sectors: leather, asset management, and research.
Last Thursday, the National Board of Revenue (NBR) issued three separate statutory regulatory orders (SROs) to this effect.
The source tax on exported leather goods, including leather itself, has been slashed to 0.5 percent, down from its previous rate.
In another move, the 15% tax levied on income from mutual fund management fees by asset management companies, slated to conclude at the end of this fiscal year, has been extended until FY2026-27.
Previously, these companies were subject to a higher rate of 37.5% before 2013, before the NBR decreased it to 15%. The extension came following an application from the Association of Asset Management Companies and Mutual Funds (AAMCMF), according to NBR sources.
Expressing appreciation for the decision, the AAMCMF highlighted NBR’s commitment to bolstering the institutional fund management industry and, consequently, the broader capital market.
A press release, co-signed by Hasan Imam, president of AAMCMF, and Waqar Ahmad Choudhury, vice-president of AAMCMF, emphasized the industry’s dedication to better-serving investors and fostering capital markets.
Local researchers have been granted a three-year tax exemption on foreign grants, effective until FY2026-27.
