CAF-2 · Chapter 8 · Question 3 of 15
Which of the following assets is ELIGIBLE to claim the Initial Allowance of 25% under Section 23?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Newly imported manufacturing machinery.
Explanation
Initial allowance is available on eligible depreciable assets. It specifically excludes road transport vehicles not plying for hire, furniture and fittings, plant or machinery previously used in Pakistan, and immovable property. Newly imported manufacturing machinery is fully eligible.
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