The committee headed by Haroon Akhtar Khan Special Assistant to Prime Minister on Revenue to review 8 percent minimum tax on services sector is expected to meet on Saturday (October 17) at Ministry of Finance. It is learnt that the Federal Board of Revenue (FBR) has invited stakeholders to participate in the meeting. The committee has considered various proposals to substitute the tax under Section 153 (1)(b) of the Income Tax Ordinance, 2001.
According to an official, one of the options is make the tax adjustable with preferably audit. Another option is to continue with 8 percent non-adjustable tax regime while allowing carry forward loss. Sources said that 11 sectors have agitated the 8 percent minimum tax regime, showing their net profit within the range of 2-3 percent. The committee deliberated at length each sector and decided that only 11 sectors will be given options or any concession, if approved by the competent authority. The representatives of courier companies, engineering services, tracker services, security services, freight forwarders, advertising, hotels, software houses and others submitted their viewpoint to the committee.
The government has decided to review 8 percent tax on services sector under Section 153 (1)(b) of the Income Tax Ordinance, 2001 and determine minimum tax rate for each of the service sector. The TORs of the committee will be to review the incidence of tax u/s 153 (1)(b) of the Income Tax Ordinance, 2001 and to determine what should be minimum tax rate under this section for each of the service sector.
Comments
Comments are closed.