ISLAMABAD, Nov 11: The Federal Board of Revenue (FBR) has allowed exemption from deduction of tax on import of plant and machinery for setting up an industrial undertaking, including hotels.

The exemption has been granted through an SRO No 1139(1)2008 whereby the board has amended section 148 of the Income Tax Ordinance 2001 to allow tax exemption on import of plant or machinery required to set up an industrial concern or for its installation in an existing industrial undertaking.

According to the notification, the FBR has also authorised income tax commissioners to grant system-based exemption certificates to importers of goods consisting of plant, machinery, fixtures, fittings or their allied equipments required for the purpose of setting up industrial undertakings.

To apply for the tax exemption, the taxpayers will be required to provide information regarding the industrial undertaking and the intended imports of plant and machinery in a prescribed application form to enable the tax department to check misuse of such exemptions and further monitor use of such imported goods of capital nature.

The step has been taken by the FBR with a view to facilitating the taxpayers, who would now be able to save valuable money and contribute towards development of the economy.