The government is planning to promulgate a Presidential Taxes Amendment Ordinance before the FY16 budget to withdraw Federal Board of Revenue's (FBR) powers of exempting duties/ taxes concessions through Statutory Regulatory Orders (SROs). Sources told Business Recorder here on Tuesday that the Taxes Amendment Ordinance-2015 would be promulgated through a Presidential Ordinance. The Ordinance would be issued after the ongoing National Assembly session.
The FBR is surrendering its powers to the Economic Co-ordination Committee of the Cabinet for issuing SROs to grant any exemption or tax concession. On surrendering powers, the ECC would be the ultimate authority to approve exemption of duties/ taxes. The FBR would not have any authority to issue exemptions through SROs.
They said the Taxes Amendment Bill has been drafted that will withdraw the FBR's powers of exempting duties and taxes through SROs and, instead will allow ECC to give exemptions/ concessions. The government now intends to issue it before budget (2015-16) for which the Taxes Amendment Ordinance needs to be promulgated when the National Assembly is not in session.
The Taxes Amendment Bill is proposed to amend Sales Tax Act, 1990; Customs Act 1969, Income Tax Ordinance-2001 and Federal Excise Act-2005 by deleting provisions which deal with the powers of the FBR to issue SROs for exemption of duties and taxes, sources added.
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