ISLAMABAD: The Finance Bill 2024 will issue major changes in Inland Revenue Statutes for Harmonization and Simplification of Inland Revenue Statutes from July 1, 2024.
According to sources, the new Finance Bill will amend the Income Tax Ordinance, 2001; Sales Tax Act, 1990; Federal Excise Act, 2005, and Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
The simplification and harmonisation of the procedures and processes under each of these statutes with each other for uniformity and ease of implementation/compliance for the tax collectors and the taxpayers is a key priority of the Federal Board of Revenue (FBR).
Amendments enacted by Finance Act, 2023 vis-à-vis those proposed in Finance Bill 2023–II
In this regard, proposed drafts of amendments in the Inland Revenue Statutes have been finalised after seeking feedback and comments from the general public and other stakeholders.
Subsequently, after further deliberations with stakeholders, the proposals have been considered during the preparation of the Finance Bill, 2024.
Under the revised laws, the FBR has proposed to give all basic administrative powers of income tax law to the additional/deputy commissioner Inland Revenue and assistant commissioner Inland Revenue under the simplification and harmonisation of Inland Revenue’s tax statutes.
The FBR has also proposed a new definition of toll manufacturing in the Income Tax Ordinance, 2001.
The new definition has been proposed under the draft amendments in the Income Tax Ordinance, 2001, for simplification and harmonisation of tax laws.
Under the proposed amendment in Section 2 (definitions) of the Income Tax Ordinance, 2001, the FBR has introduced a new definition of “banking” under the proposed draft amendments in the Income Tax Ordinance, 2001, for simplification and harmonisation of tax laws.
Under the proposed definition of “banking”, it means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw-able by cheque, draft, and order or otherwise, it added.
The scope of “sales tax fraud” is intended to be enlarged by the FBR by seeking an amendment to Section 2(37) of the Sales Tax Act, 1990.
The existing definition of sales tax fraud provided under Section 2(37) is quite comprehensive, however, the new proposed definition is more exhaustive and drafted to further enlarge its scope.
Copyright Business Recorder, 2024
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