KARACHI: The government has increased the rate of advance income tax for commercial importers from 5.5% to 6%. According to recent amendments made to the Income Tax Ordinance, 2001, this change was introduced through sub-clause 27(13) of Clause 7 of the Finance Act, 2023, amending Serial No. 3 of Table to Part-II of the ordinance.
In order to ensure a smooth transition and effective implementation of the revised rate, all Collectors have been directed to issue strict instructions to the concerned officers. This directive aims to guarantee the collection of the revised levy starting from 1st July, 2023, considering previous experiences with similar issues.
Furthermore, the Collector of Customs Appraisement (East) has been requested to take up the matter with the board.
New advance tax imposed on construction, residential businesses
The objective is to incorporate and link this rate increase to the commercial importers of respective items in the WeBOC system, as advised by the Directorate of Reforms & Automation. This action follows the reply provided by the Directorate in response to the Collectorate’s earlier CRF (Customs Reform File) regarding the same matter.
The adjustment in the advance income tax rate for commercial importers is a significant development that will have an impact on businesses involved in importing goods. The increased rate aims to contribute to the government’s revenue generation efforts and align with the broader fiscal goals set forth in the Finance Act, 2023.
Copyright Business Recorder, 2023
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