Dubai Islamic Bank, SCB to float sukuk

ISLAMABAD: Dubai Islamic Bank and Standard Chartered Bank are to float rupee denominated sukuk in the domestic financial market.

According to a statement of the Federal Board of Revenue (FBR) as reported by the Finance Division, Pakistan Domestic Sukuk Company Limited (PDSCL) is a 100 per cent government owned company, established with the objective of raising funds to support the national budget.

The Finance Division has authorised Dubai Islamic Bank and Standard Chartered Bank to float rupee denominated sukuk in the domestic financial market.

It was further proposed that income of the PDSCL may be exempt from income tax and the provisions of sections 151, 153 and 155 relating to withholding tax on profit on debt, sale of goods rendering of services and rental income respectively, may not be applicable to the company.

In view of the above the following amendments to Part-I and Part-IV of the Second Schedule to the Income Tax Ordinance, 2001 have been made vide SRO 772(I)2008 dated 24.07.2008:(a) in part-I, in clause (66), after sub-clause (xxi), the following new clause shall be added, namely: “(xxii) Pakistan Domestic Sukuk Company Ltd; and (b) in Part-IV, after clause (67), the following new clause shall be added namely: “(68) The provisions of section 151, 153 and 155 shall not apply in respect of payments made to the PDSCL.”