The Karachi Tax Bar Association (KTBA) wrote a letter to Asim Ahmed, chairman of the Federal Board of Revenue (FBR) in which it mentioned that banks are illegally deducting withholding tax on exports of software and IT-based services. It mentioned that banks misunderstood Section 154A of the Income Tax Ordinance, 2001as under section 65 of this ordinance 100 percent tax credit is allowed.
