Business community: tax relief measures announced The government on Saturday accepted a number of demands of the business community and decided not to access bank accounts of National Tax Number (NTN) holders filing income tax returns, reduced penalty for non-filing of returns from Rs 50,000 to Rs 10,000; would accept declarations of Income Support Levy and issue exemption certificates to importers for six months under section 148 of the Income Tax Ordinance 2001. Sources told Business Recorder here on Saturday that the government has agreed to tax relief measures for the business and trade community during a meeting of chambers and federations with the government high-ups including Chief Minister Punjab Shahbaz Sharif, Finance Minister Ishaq Dar, FBR Chairman Tariq Bajwa and other senior tax officials at Lahore. The government has also decided to give major relief to taxpayers and mandatory filing of wealth statement has been relaxed and only those taxpayers shall submit wealth statement whose taxable income exceeds Rs 1 million. Earlier through finance Act 2013, it was made mandatory for all taxpayers to submit wealth statement irrespective of quantum of their income declared in tax returns. Some of the anti-documentation measures agreed by the authorities included reduction in penalty for non-filing of returns. It has been agreed to reduce the penalty for non-filing of income tax returns from Rs 50,000 to Rs 10,000. In budget (2013-14), the FBR has raised penalty for non-filing of income tax returns and statements. A minimum penalty of Rs 20, 000/- and a maximum penalty of fifty percent of the tax payable was provided for non-filing of return u/s 114 within the due date. In cases, where no tax is payable a penalty of Rs 20,000/-shall be levied for non filing of return. According to sources, the meeting also discussed the section 165A of the Income Tax Ordinance 2001 introduced through Finance Act, 2013 relating to the online access to banks central database containing details of its account holders. In this regard, the government has also agreed that the FBR will not access bank accounts of the NTN holder filing income tax returns. The compliant taxpayers have been facilitated. The provision of access to bank accounts has been restricted to the persons operating out of the tax net. Fulfilling another demand of the business community, the government has also agreed that the FBR will not question the amount declared in the Income Support Levy (ISL) form. The amount deposited as ISL would be acceptable to the tax department and no question would be raised. To facilitate importers, it has also been agreed that exemption certificate under section 148 of the Income Tax Ordinance 2001 would be issued for a six months period instead of quarterly basis, sources said. To relax harsh conditions of the Active Taxpayer List (ATL), sources said that the government has also agreed that now only those taxpayers would be taken out of ATL who would fail to file two consecutive sales tax returns. Initially, the condition was restricted to one return to ensure compliance. The non-filer of one sales tax return was excluded from the ATL and now the condition has been relaxed for the business and trade. It is expected that the measures would be implemented through formal notifications and clarifications next week, sources added. The government also discussed relief to business community by not inquiring about the source of investment made in new industrial undertakings under Income Tax Ordinance 2001. However, no final decision was taken on the said proposal.
Posted on: Sun, 10 Nov 2013 08:03:53 +0000
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