The issue of jurisdiction for levy and collection of sales tax on supplies/services provided by restaurants has arisen after issuance of notices by Federal Board of Revenue (FBR) to restaurants registered with Sindh Board of Revenue (SRB).
The Federal Board of Revenue has devised a new performance reporting system of the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to regularly update Advisor to the Prime Minister on Finance, Dr Abdul Hafeez Sheikh on the revenue collected by each unit to ensure meeting of the revenue collection target of Rs 1,952 billion for 2011-12.
A meeting was held here on Tuesday under the chairmanship of Dr Abdul Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue, which was attended by the Deputy Chairman Planning Commission, Chairman FBR, Secretary Finance, Secretary EAD and officials of the Finance Ministry.
Any move of the Federal Board of Revenue to make it mandatory for exchange companies to submit tax exemption certificates of the Commissioner Inland Revenue for non-payment of 0.3 percent withholding tax on cash withdrawal from banks would not help in exemption from section 231A of the Income Tax Ordinance 2001.
The World Bank has proposed to the Federal Board of Revenue to rationalise the number of staff and employees to improve efficiency of the tax administration under reforms. Sources told Business Recorder here on Friday that the WB mission has submitted a report to the FBR on the ''lessons learned from the Tax Administration Reform Project of the FBR''.
Dual tax rates at import stage for manufacturers and other importers are hindering the import process, causing delay in production activity. In a letter issued by Karachi Tax Bar Association (KTBA) to the chairman of Federal Board of Revenue (FBR) and Member Inland Revenue, FBR, has highlighted that the taxpayers are facing serious hardship in import process as the rate prescribed in the Income Tax Ordinance 2001 for manufacturers at import stage was 3 percent of the import value and other importer are liable for 5 percent withholding tax of the import value.
Chief Executive Officer and Managing Director of the Lahore Stock Exchange (G) Limited Aftab Ahmed Chaudhry has said that the investors seeking to avail leverage position in the stock market has been given relief through modification of Financing Participation Ratio (FPR) whereas previously the Finances were required to deposit 25 percent cash to carry his long Ready Market position through MTS beyond the T+2 Rolling Settlement System.
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