The Federal Board of Revenue has announced an income tax amnesty scheme for the sellers, suppliers and service providers to the five zero-rated sectors - textile, leather, carpets, surgical and sports goods and imposed reduced rate of one percent withholding tax on the local sales, supplies or services made or rendered to the five sectors.

The Federal Board of Revenue on Friday issued a revised statutory regulatory order (SRO) for five zero-rated sectors under which further relaxation has been given to textile, leather, surgical, sports and carpet industries by reducing sales tax rate from 17 to 6 and 4 percent at different stages involving unregistered persons with no facility of input tax adjustment or refund.

The Federal Board of Revenue on Friday announced that brokerage/commission earned in five zero-rated sectors - textile, leather, surgical, sports and carpets would be liable to 10 percent withholding tax which would be final discharge of tax liability. In this connection, the FBR issued a circular number 3 of 2011 here on Friday to clarify the deduction of withholding tax on commission payments made by sales tax zero-rated categories of taxpayers.