Tax amendment ordinance to promote trade and facilitate traders

Islamabad, January 04, 2020 (PPI-OT): The Tax Amendment Ordinance has made corrections in law to accommodate reasonable demands of traders, says a Press Release issued by Federal Board of Revenue. Since CNIC disclosure of every sale is a major requirement of law now, the traders were rightfully demanding a decrease in minimum tax rate as majority of taxpayers were earlier paying the minimum tax on grossly suppressed sales. In view to encourage correct declarations, the rate of minimum tax has been rationalized. Similarly medium sized traders have been absolved from their liability as withholding agent to increase ease of doing business.

The trade associations have committed to get all medium and large sized retailers registered with income tax. The association have also nominated their representatives to evaluate turnover of under declaring business and have also joined hands with FBR for dispute resolution in audits. FBR considers that the future of taxation lies in collaboration with taxpayers as opposed to confrontation. It is likely that this arrangement will achieve a win-win situation for traders and FBR in achieving goals of documentation and reasonable taxation without creating fear and distorted economic behaviour.

For more information, contact:
Principal Information Officer,
Press Information Department (PID)
Tel: +92-51-9252323, +92-51-9252324
Fax: +92-51-9252325, +92-51-9252326
Email: piopid@gmail.com
Website: www.pid.gov.pk