Cabinet waives taxes on bonds
Country to raise $2b through Chinese currency-denominated bonds, other papers
The federal government has recently offered very high interest rate to overseas Pakistanis on their investments in digital accounts. PHOTO: FILE
ISLAMABAD:
The federal cabinet on Tuesday waived one-dozen types of income taxes to raise around $2 billion in debt through Pakistan’s first Chinese currency-denominated bonds and Eurobonds in a bid to make borrowing relatively less expensive.
The investors who would invest in these bonds and earn profits will not be required to pay up to 30% income tax along with other taxes.
The cabinet exempted investors from income tax after the Ministry of Finance told it that without exemptions, the sovereign bonds would be “less appealing to international investors”.