AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Print

Draft of new tax ordinance: Govt revisiting certain clauses

  • The Law Division high-ups are also engaged in the drafting of the clauses related to the broadening of tax base
Published September 2, 2021
Follow us

Islamabad: The government is revisiting certain clauses of the draft of the Tax Laws (Third) Amendment Ordinance, 2021, to review new measures for broadening the tax base.

Sources told Business Recorder that the Tax Laws (Third) Amendment Ordinance 2021 will amend certain clauses of the Finance Act 2021.

Certain clauses of the Ordinance are being reviewed which has resulted in delay in the promulgation of the Presidential Ordinance.

The Law Division high-ups are also engaged in the drafting of the clauses related to the broadening of the tax base. The FBR is not solely engaged in the drafting of the said ordinance.

Recently, a summary was moved to the prime minister on the Ordinance but it apparently requires further deliberations and review.

According to the sources, the Prime Minister’s Office has also reviewed the said Ordinance and submitted its observations on the provisions relating to the broadening of the tax base.

“Whether any political government can introduce such harsh measures during its remaining last two years for broadening the tax base is yet to be seen,” sources said on the condition of anonymity said.

The government is reviewing whether it is practically possible to implement measures such as disconnection of mobile phones, electricity, and gas connections of non-filers of income tax returns.

The proposal of additional taxes on the electricity bills of professionals such as lawyers, dentists, doctors, and accountants is also under revision.

Tax Laws (2nd Amendment) Ordinance, 2021: 76 corporate IT exemptions withdrawn

Sources said that the Tax Laws (Third) Amendment Ordinance 2021 may also allow access of the Federal Board of Revenue (FBR) data of taxpayers to the National Database and Registration Authority (Nadra) for broadening the tax base.

However, it has yet not been decided whether the punishment for tax officials in case of leakage of taxpayers’ information would also apply on the Nadra officials.

If the Ordinance makes Nadra officials as custodian of taxpayers’ data, the same penal provisions of the Income Tax Ordinance 2001 should apply on them in case of leakage of taxpayers’ information, they added.

Through the new Ordinance, sources said the FBR will also give legal cover to the foreign remittances received through foreign currency accounts of Overseas Money Service Bureaus (MSB), Exchange Companies (ECs), and Money Transfer Operators (MTOs) for granting income tax exemption under Section 111(4) of the Income Tax Ordinance, 2001.

Sources said that the Tax Laws (Third) Amendment Ordinance 2021 will provide right of appeal to the importers against valuation ruling with the FBR Member Customs Policy.

The Ordinance has also proposed to provide temporarily clearance of goods against submission of bonds/financial securities to the Independent Power Producers (IPPs).

Steel, oil & ghee industry supplies: New tax law may grant exemption from 3pc further GST

Sources said that the Ordinance would also introduce a provision relating to the re-assessment or re-opening of Goods Declarations (GDs).

Tax Laws (Third) Amendment Ordinance 2021 will withdraw 17 percent sales tax on fat-filled milk sold in retail packing under brand name.

After promulgation of the Ordinance, fat-filled milk sold in retail packing under brand name would be subjected to sales tax zero-rating.

The FBR will also propose to change certain Pakistan Customs Tariff headings to rectify the errors in the Finance Act 2021.

Certain procedural changes have also been proposed in the Income Tax Ordinance 2001 and Sales Tax Act 1990.

Under the proposed Ordinance, the FBR has proposed to facilitate the ghee and cooking oil industry by granting exemption of three percent value addition sales tax at the import stage.

Moreover, the government may also exempt three percent further sales tax on the supplies made to the unregistered persons.

Similar kind of relief is expected to be announced for the steel sector and their supplies would also be exempted from “further sales tax.”

Copyright Business Recorder, 2021

Comments

Comments are closed.

Draft of new tax ordinance: Govt revisiting certain clauses

B2B barter trade mechanism: MoC empowered to impose conditions, curbs

Power tariff raise proposal not firmed up

CDWP approves seven projects worth Rs22bn

Tarin raises the alarm about inflation surge

Exchange rate: Removal of cap to inject stability into currency market: Bostan

Dar challenges financial figures presented by IK

TAL JV allowed to sell Mamikhel gas

Defence minister criticises ‘warmongering role’ of US

SNGPL says has reduced UfG losses by 23,348mmcf

FBR seeks to raise FED on motor vehicles