The federal government on Saturday decided to give tax relief on the prices of edible oil/ghee as well as steel products, while also tightening its grip over non-filer industrial and commercial consumers.

The Federal Board of Revenue (FBR) has decided to impose an additional sales tax of 5% to 17% on electricity and gas on customers not registered in the Active Taxpayer List (ATL).

Earlier, the tax on non-compliant clients stood at 5%.

The measures introduced by the government are aimed at broadening the tax base and crack down on those not paying taxes.

The government has also waived 1% additional tax on the steel sector and supply of edible oil.

On Friday, the FBR issued an SRO 1223(I)/2021 to amend SRO 648(I)/2013.

Read Taxes on imports fuel inflation

According to the notification, further sales tax would not be applicable to the supplies by the steel sector and supplies by the edible oil sector.

Through SRO 1222(I)/2021, the federal government has levied sales tax at an extra rate on the total amount excluding the amount of federal taxes, in addition to the tax payable, on the supplies of electricity and gas to persons having industrial or commercial connections but had not obtained a sales tax registration number or were not on the ATL.

Similarly, commercial consumers will be subjected to an additional tax of 5% on electricity and gas bills of up to Rs10,000; 7% on bills of Rs10,000 to Rs20,000; 10% on bills of Rs20,000 to Rs30,000 and 12% on bills of Rs30,000 to Rs40,000.

The FBR believes that the move would encourage the sales tax registration of industrial and commercial consumers and increase their numbers on the FBR’s ATL that will in turn generate tax revenue.

Source link


Please enter your comment!
Please enter your name here