Connect with us

Hi, what are you looking for?

Online Business Success

President Alvi promulgates new tax laws containing fresh penalties for non-filers

371025 022552 updates


A representative image.
A representative image.

ISLAMABAD: President Arif Alvi has promulgated new tax laws, empowering the authorities to disconnect mobile phones/SIMS, electricity and gas connections of persons who are required to file tax returns but fail to appear on the Active Taxpayer List (ATL).

The president promulgated the Tax Laws (Third Amendment) Ordinance 2021 for allowing the Federal Board of Revenue (FBR) to share its data with the National Database and Registration Authority (NADRA) with the objective to broaden the tax net.

NADRA shall share its records and any information available or held by it with the Board, as per the ordinance.

The ordinance contains strict penalties for persons who do not file tax returns. A penalty of Rs 1,000/- per day of default has been included in the Ordinance.

The government has also increased the amount of penalty for tier-1 retailers who are not integrated with the FBR and imposed an additional advance tax on rates ranging from 5% to 35% on professionals using domestic electricity connections.

The Ordinance identifies professionals as accountants, lawyers, doctors, dentists, health professionals, engineers, architects, IT professionals, tutors, trainers, and other persons engaged in the provision of services.

Sales tax rules in the Ordinance

The government has granted sales tax zero-rating to fat-filled milk including those sold in retail packing under a brand name or a trademark.

Under the Ordinance, the reduced rate of 16% sales tax would be applicable on supplies made by POS integrated outlets where payment is made through the digital mode; reduced rate of 14%on meltable scrap imported by steel melters; a reduced rate of 5% on import of electric vehicles on Completely Built Up (CBU) condition and reduced rate of 16.9% sales tax on business-to-business transactions, where payment is made through the digital mode.

Advertisement. Scroll to continue reading.

Moreover, the government has excluded steel and edible oil sectors from the charge of further tax.

FBR gives legal cover to foreign remittances, right of appeal to importers

Through the new Ordinance, the FBR has given legal cover to 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.

The Tax Laws (Third) Amendment Ordinance 2021 has provided the right of appeal to importers against valuation ruling with the FBR Member Customs Policy.



Source link

Click to comment

Leave a Reply

Latest

Top Stories

African degens are on a journey to the moon. With crypto, African people’s savings are hedged against insane inflation levels, they can find employment...

Top Stories

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption...

Top Stories

Crypto exchange Binance has signed a memorandum of understanding with the Securities and Exchange Regulator of Cambodia (SERC), according to a June 30 announcement. Binance...

Top Stories

When cryptocurrencies like Bitcoin (BTC) go through bear phases like the one we currently find ourselves in, the idea of earning passive income from...

Online Business Success

A representational image of the Federal Board of Revenue building. — APP/File The Federal Board of Revenue (FBR) announced that the last date for...

Top Stories

Bitcoin (BTC) needs to go lower before putting in a macro bottom, one of the market’s most accurate indicators shows. Data from sources including...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement