October 28, 2013 BRIEF TAX NEWS: 1). FBRs decision for with holding ISL lauded Ismail Suttar, President, Lasbela Chamber of Commerce and Industry has termed the decision of the FBR to hold the levy of 0.5 per cent income support on cash deposits in banks account of the tax payers, as quite appreciable in order to avoid twice taxation on them. He also appreciated the extension in the date of filing of income tax returns for the year 2013 upto 30th November, allowed by the FBR. This extension would further facilitate the tax payer to file their returns. The Chambers President has also appreciated the Sindh High Court for giving justified decision on right time. He urged the FBR to pursue this decision permanently and make refund of the amount of this tax to the tax payers who have already deposited the same, as this tax is like double taxation and is an additional burden on the tax payers who are already under pressure due to high cost of utilities, banks mark-ups and other unfavourable economic factors, in spite of which they are trying their best to keep moving the economic wheel of the country.-PR 2). Despite registration with SBR: firms,individuals being forced to submit returnsto FBR. The firms and individuals, who are registered with Sindh Board of Revenue (SRB), are unnecessarily forced to submit returns with Federal Board of Revenue (FBR), creating complication and hardship for tax payers. The Karachi Chamber of Commerce and Industry (KCCI) drew the attention of government towards duplication of e-filing of monthly sales tax returns. Service providers in Sindh have been asked to get them registered with SRB and pay their sakes tax along with the monthly return to SRB. However, it is very surprising that the service providers are also asked to submit their monthly returns to FBR as well. Duplication of work and wastage of time creates problem for the business community related to service industry. 3). Smuggling of arms and ammunition: Commission suggests restoration of old FBR organisational structure. One-member Commission on smuggling of arms and ammunition has strongly recommended restoration of old organisational structure of the Federal Board of Revenue (FBR) under which separate Members for Customs, Sales Tax, Federal Excise, Income Tax and Withholding Tax were independently dealing all the federal taxes. According to sources on Sunday that the former FBR Member Customs, Ramzan Bhatti has categorically declared in its fact-finding report that the reforms in the tax administration and new organisational structure of the FBR as a result of Tax Administration Reform Project failed to achieve the desired results, and resultantly there is low Tax-to-GDP ratio in the country
Posted on: Mon, 28 Oct 2013 05:19:42 +0000