ISLAMABAD: The Federal Board of Revenue (FBR) has decided to draft "Inland Revenue Codes" i.e. simple version of the Income Tax Ordinance 2001, the Sales Tax Act 1990, and the Federal Excise Act 2005, for better understanding of the general public.
Sources told Business Recorder here on Thursday that the concept of the "Inland Revenue Codes" was discussed in the Board-in-Council meeting held at the FBR House. The FBR also considered hiring a consultant/expert for drafting the "Inland Revenue Codes" for the FBR.
When contacted, a tax expert explained that the "Inland Revenue Codes" means Income Tax Ordinance 2001, Sales Tax Act 1990, and Federal Excise Act 2005.
The FBR wanted to redraft the language of the Income Tax Ordinance 2001, Sales Tax Act 1990, and Federal Excise Act 2005, to facilitate the taxpayers and the general public. The FBR is expected to hire a local consultant for drafting of the Inland Revenue Codes.
With the passage of time, the Income Tax Ordinance 2001, Sales Tax Act 1990 and Federal Excise Act 2005 have become complicated for the taxpayers.
For example, the FBR has no power to collect sales tax on services but the Federal Excise Act 2005 contains a schedule on services.
Copyright Business Recorder, 2021
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