Automatic issuance of exemption certificate under section 152

Automatic issuance of exemption certificate under section 152: Finance Act 2023 to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws WHEREAS, it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2023, and to amend certain laws for the purposes hereinafter appearing;

For ease of doing business, automatic issuance of exemption certificate has been provided under sections 159 ad 153 of the Ordinance. However, the same facilitative measure was missing in section 152. For achieving the purpose of ease of doing business also for resident persons who intends to make time bound payments to non-resident persons, a new proviso has been inserted vide Finance Act, 2023 in sub-section (5A) of section 152 of the Ordinance whereby an application filed by a taxpayer for issuance of exemption certificate will be deemed to have been granted after expiry of 30 days from the date of application where the Commissioner Inland Revenue fails to pass an order within said period of 30 days.

For computing the above mentioned period of 30 days, the adjournment period sought by the applicant will be excluded. Furthermore, Commissioner Inland Revenue has been empowered to modify or cancel the certificate issued automatically by Iris on the basis of reasons to be recorded in writing and after providing an opportunity of being heard to the taxpayer to whom exemption certificate has been issued automatically.

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