The Ministry of Finance would review implementation status of tax policy recommendations made by the Economic Advisory Council (EAC) to determine whether Federal Board of Revenue (FBR) has introduced the amendments to tax laws. Sources told Business Recorder here on Tuesday that the fourth meeting of the EAC would be convened at the Ministry of Finance on December 4.
One of the major recommendations of the EAC is taxing real estate transactions at realistic value and reducing distortions in terms of sales tax imposition on local products vs. no sales tax on similar imported products. Other recommendations included providing tax credit on technology upgradation expenses to local producers. The EAC had recommended that FBR should take following measures for broadening and expanding the tax base: The registration of new tax payers; improvement in tax return filing through raising cost of non-compliance; tax facilitation for taxpayers; bringing retailers and HNWI in the tax net and taxing real estate transactions taking into account the realistic value.
EAC had recommended that the FBR will provide approved cash registers and receipt rolls to all existing retailers for ensuring real time integrated link with FBR database. In initial phase, 10,000 retailers will be targeted. The FBR to evaluate proposal of reduction of minimum turnover tax from 0.5 percent to 0.2 percent for all Oil Marketing Companies (OMCs), refineries and gas companies, recommendations of the EAC added. The EAC has enabled the forum to provide an opportunity to interact and exchange ideas with prominent professionals associated with economic development issues of Pakistan with recommendations presented by five different sub-groups of the EAC.
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