ISLAMABAD: President Arif Alvi has issued new tax laws, empowering the authorities to disconnect mobile phones/SIMS, electricity, and gas connections of non-filers.
According to the new amendment, the Federal Board of Revenue (FBR) will share its data with the National Database and Registration Authority (NADRA) to broaden the tax net. As per the ordinance, NADRA shall share its records and any information available or held by it with the Board. The ordinance contains strict penalties for non-filers. 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 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. Steel and edible oil sectors are excluded from the charge of further tax.
FBR has given legal cover to foreign remittances received through foreign currency accounts of Overseas Money Service Bureaus, Exchange Companies, and Money Transfer Operators for granting income tax exemption under Section 111(4) of the Income Tax Ordinance, 2001. Importers can appeal against valuation ruling with FBR Member Customs Policy, according to the Amendment Ordinance 2021.