The government has withdrawn powers of the Federal Board of Revenue (FBR) to grant concessions and exemptions of duties/taxes through Statutory Regulatory Orders (SROs) and the Economic Coordination Committee of the Cabinet is now the competent authority to grant any exemption or tax concession. Through a Presidential Taxes Amendment Ordinance, the FBR's powers of exempting duties/taxes concessions through SROs have been taken away.
Sources told Business Recorder on Friday that the FBR can raise the tax rates of federal levies, but cannot reduce tax rates. The FBR can impose regulatory duty and raise sales tax rates, but no concession can be issued to anyone. The Taxes Amendment Bill has amended relevant provisions of the 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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