PIA; petroleum, poultry and rice dealers: SRO effecting cut in turnover tax in a day or two

The Federal Board of Revenue (FBR) will issue a statutory regulatory order (SRO) in a day or two to reduce the rate of turnover tax for Pakistan International Airlines (PIA), poultry sector, petroleum agents and distributors and rice dealers under section 113 of the Income Tax Ordinance 2001.
Sources told Business Recorder here on Tuesday that the Law and Justice Division has cleared the SRO for reduction in the rate of the turnover tax for poultry industry, national flag carrier, petroleum agents, distributors and rice dealers. Through a single notification, the FBR will extend tax concessions to the said sectors under section 113 of the Income Tax Ordinance 2001.
It is expected that the turnover tax would be reduced from one percent to 0.2 percent for petroleum agents and distributors and rice dealers under section 113 of the Income Tax Ordinance 2001.The 80 percent reduction in the turnover tax liability is expected to be granted to the petroleum agents and distributors registered under the Sales Tax Act 1990 and rice dealers.
Through the same SRO, the FBR is likely to give 50 percent reduction in the minimum tax under Section 113 of the Income Tax Ordinance, 2001. At the same time, the Board may notify reduction in minimum tax rate from 1 percent to 0.5 percent for poultry sector under Section 113 of the Ordinance 2001.
In the past, the federal government had reduced turnover tax from one percent to 0.5 percent for refineries, Oil Marketing Companies (OMCs), gas companies and any category of taxpayer having annual turnover of over Rs 1 billion. The Board had also allowed 80 percent rebate on payment of turnover tax by the pharmaceutical distributors, distributors of fast moving consumer goods and distributors of fertilisers. The FBR had already reduced turnover tax from one to 0.5 percent for Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGC).