ISLAMABAD: Tax experts have raised four major issues in the Federal Board of Revenue's draft simplified return of income for traders/retailers having turnover less than Rs10 million.
Some inconsistencies between the draft return, and the agreement signed between the government and traders on October 30, 2019 are: First, the Clause 1 of the Traders Agreement specifically states that the relaxation of turnover tax shall be for traders with turnover up to Rs100m at 0.5 percent instead of 1.5 percent.
Considering that in mind, the FBR should have ideally introduced the simplified return for traders with turnover up to Rs100 million instead of Rs10 million.
Second, the return does not encompass minimum turnover tax at 0.5 percent.
Third, the Clause 8 of the agreement states that the return shall be simple.
It can be construed as simple being on two pages; however, it would practically be backed by accounts though not specifically required.
Fourth, at this stage, the form is in English.
Tax experts believed that the final version of the return will be in both, English and Urdu.
Experts added that the said four matters would be corrected in the final SRO assuming that agreement still holds the field.
The All Pakistan Anjuman-e-Tajiran (APAT) have also opposed the one-page simple form in English language issued by the Federal Board of Revenue (FBR) for retailers/traders having annual turnover up to Rs10 million.
The FBR has "violated" the agreement signed between the government and traders on October 30, 2019.
Under Clause 8 of the agreement, a simple return form for retailers would be notified in Urdu language, the association had said.
Copyright Business Recorder, 2020