Reports of Standing Committee on Finance on "The Income Tax (Amendment) Bill, 2015 and The Income Tax (Second Amendment) Bill, 2015" were presented in the Lower House of the Parliament here on Thursday. The National Assembly also approved two bills including "The Islamabad Subordinate Judiciary Service Tribunal Bill, 2015 and The Federal Judicial Academy (Amendment) Bill, 2015."
Chairman Standing Committee on Finance Qaiser Ahmed Sheikh presented two reports on "The Income Tax (Amendment) Bill, 2015 and The Income Tax (Second Amendment) Bill, 2015" separately in the House. According to the sources, the government today (Friday) is likely to table "The Income Tax (Amendment) Bill, 2015 and The Income Tax (Second Amendment) Bill, 2015" in the National Assembly for passage.
The Income Tax (Amendment) Bill, 2015 would provide an opportunity to non-filers to document their businesses and other income generating activities, the rate of 0.6 percent is being reduced to 0.3 percent up to September, 30 2015, so that the persons and traders not filing their returns may file the same by the said date and document their income generating activities.
The Income Tax (Second Amendment) Bill, 2015 would provide two mutually exclusively options, for the corporate sectors of Freight Forwarders, Air Cargo Services, Courier Services, Manpower Suppliers, Hotel Services, Security Guard Services, Software Development Services, Trakker Services, Advertisers, Share Registrar Services, Engineering Services and Car Rental Services as under:
The aggrieved corporate service sector be allowed an option to opt out of the minimum tax regime under section 153(1)(h) read with section 153(3)(b) of the Income Tax Ordinance, 2001 provided the said aggrieved corporate service sectors offer themselves for audit by an Irrevocable undertaking in writing in advance latest by October 15, 2015 (or date to be decided by government) for the Tax Year 2016.
The aggrieved corporate service sector be allowed to carry forward the tax paid under section 153(1)(b) read with section 153(3)(b) of the Income Tax Ordinance, 2001 in excess of their tax liability otherwise for 10 years in the same manner as carry forward of the Minimum Tax under section 113(1)(c) to be slightly modified] of the Income Tax Ordinance, 2001 is allowed. Needless to say that the rate of minimum tax of 8% will remain intact for the corporate service sector and no exemption certificate will be issued. The purpose of rationalizing the provisions regarding exemption from withholding tax on certain banking transactions is to prevent loss to the national exchequer.
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