Islamabad March 20 2025: Following the termination of Hub Plant Power Purchase Agreement, the withholding tax on dividend will be deducted at 15% and 30% instead of earlier 7.5% and 15% when the Company’s PPA was in force, states hub power in its filing to the exchange.
“Withholding of tax on dividend would be made in accordance with the provisions of the Income Tax Ordinance, 2001 (ITO). Currently Hubco is required to withhold tax from the shareholder u/s 150 read with the provisions of Rule 1 of the Tenth Schedule and clause 111A of Part IV of the Second Schedule to the ITO will be 15 percent where the shareholder is a filer as defined under the provisions of ITO and 30% where the shareholder is NOT a filer as defined under the provisions of ITO” states the notice.
“Following the termination of Hub Plant Power Purchase Agreement, the withholding tax on dividend will be deducted at 15% and 30% instead of earlier 7.5% and 15% when the Company’s PPA was in force. The Company will ascertain the tax status of members as at the first day of book closure and will deduct withholding tax accordingly” the notice added.
