FBR brings key retailers in advance tax regime
KARACHI: The Federal Board of Revenue (FBR) has brought certain retailers into the ambit of the advance tax for their documentation and improvement in the revenue collection, official sources said on Monday.
The sources said the retailers who have been brought into the ambit of the advance tax included pharmaceuticals; poultry and animal feed; edible oilfinance act 2013 and ghee; auto parts; tyres; varnishes; chemicals; cosmetics; and IT equipment.
From July 1, 2021, the sources said the manufacturers and distributors would deduct the advance tax on the sales to retailers on behalf of the revenue board.
Prior to this amendment brought through the Finance Act, 2021, the retailers of electronics, sugar, cement, iron and steel, motorcycles, pesticides, cigarettes, sugar, textiles, beverages, paints or foam sector were already paying the advance tax.
The tax is being collected under Section 236H of the Income Tax Ordinance, 2001. This section was introduced through the Finance Act, 2013 to document the retailers.
The advance tax rate under this section is 0.5 per cent in case the retailers are on the Active Taxpayers List. The rate will double to 1 per cent in case the retailers are not on the ATL.
The sources said after imposition of the advance tax on retailers the revenue under this head registered a significant growth. The advance tax collection on retailers was Rs937 million in 2013/14 and it increased to Rs5.48 billion in 2018/19, according to the official documents.
Chinese companies are not satisfied with the pace of work on CPEC
Special Assistant to Prime Minister CPEC Khalid Mansoor has admitted that Chinese...
SBP took action on the rising value of the dollar
When the SBP took action on the rising value of the dollar,...
The growth of major industries in the country has increased
The growth of major industries in the country has increased during July...
Shaukat Tareen has allowed the provinces to continue collecting taxes
Finance Minister Shaukat Tareen has allowed the provinces to continue collecting taxes...
Exports in Japan up by 26 pct. In August, enduring fast retrieval from pandemic
Government statistics showed that good exports in Japan saw a 26.2% growth...