BOL News Exclusive: FBR accepts error in flour mills tax proposal, rectification assured

Shahnawaz AkhterWeb Editor

24th Jun, 2021. 12:20 pm
Flour mills tax

KARACHI: The tax authorities have accepted an error in the proposal for an increase in the turnover tax on flour mills and said that the same would be rectified through an amendment in the Finance Bill 2021.

In a statement, the Federal Board of Revenue (FBR) clarified that the table prescribing tax rates for a minimum tax on a turnover basis has been substituted in the Finance Bill 2021 to provide relief to the retailers of fast-moving consumer goods (FMCG), including flour mills and refineries.

“The words, “flour mills” could not be mentioned inadvertently in the table, which was an error and had been noted and would be rectified in the amended bill.”

This means that the minimum tax applicable on flour mills would remain at 0.25 percent of the turnover, instead of 1.25 percent as being generally interpreted.

The revenue board also clarified that to boost the present government’s drive to keep inflation under control and to give maximum relief to the business community, the general sales tax (GST) on wheat bran proposed to be enhanced to 17 percent in the Finance Bill would also be withdrawn.

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