FBR claims settlement of issues with small traders on new Tax Ordinance
ISLAMABAD: In recent development, the FBR signed an undertaking with the small traders mentioning that it would not deprive small traders from gas, electricity or mobile phone services as mentioned in the new tax laws which have recently been introduced through presidential ordinance. In response, the small traders’ bodies postponed the nationwide protest which was announced earlier in this connection.
The government had presented an ordinance on Sept 17 in which the FBR was empowered to take action against non-filers in terms of disconnecting the utilities with the help of NADRA record and Artificial intelligence. The discussions were going on for some days between the FBR member and small traders’ delegation.
FBR wanted to bring the un-registered professionals to the tax net, FBR member clarified
FBR clarified that there were misunderstandings with reference to Tax Laws which were successfully removed now. They added that the FBR wanted to focus and register the professionals and un-registered traders who were running their businesses from their homes and it was not at all related to small traders who were not required to install the Point of Sale (POS) application.
The FBR member further said that the persons who were not being displayed on Active Taxpayers List (ATL) will have to face the music. Moreover, the change in advance tax rate on electricity mentioned in the said ordinance would not affect small traders or income tax filer and that the provision was included to bring non-filers to tax net, FBR member said.
Qaiser Iqbal (FBR member) also shared that the Tax commissioners were also instructed and advised to listen and resolve the concerns of traders at the local level.
We have decided to call off the protest for Sept 27 on FBR assurance and explanations, Traders leader Kashif Chaudhry told
Traders’ representative Kashif Chaudhry told that the assurance and explanations from the FBR member were quite satisfactory therefore they had decided to call off the protest for Sep 27. The traders had also planned to protest before the finance ministry and FBR against the application of new tax laws.
The FBR member said that he was grateful to the traders’ leadership for their cooperation and the confusions regarding tax laws would be sorted out through mutual discussions. FBR claimed that the members of small traders association were representing traders’ community from across Pakistan.
All traders’ leaders collectively declared that they would keep cooperating with FBR on vital issues related to tax compliance to strengthen the economy.
The new ordinance stated that the FBR would be empowered to issue Income Tax General Order to persons; not appearing on ATL but liable to file a return under the ordinance. Moreover, the changes were also made in penal regime for non-filers in this ordinance. According to the said ordinance, the fine for the non-filers had been raised to Rs1,000 for every day of default. For the tier-1 retailers not connected to the FBR, the government announced an upsurge of penalty. For the professionals who have been using domestic electricity connections, the government announced an additional advance tax (5pc to 35pc).
The term “professionals” include accountants, lawyers, doctors, dentists, health professionals, engineers, architects, IT professionals, tutors, trainers and other persons who are involved in the provision of services.
