Federal Board of Revenue (FBR) Chairman Shabbar Zaidi Tuesday said the FBR has agreed to reduce withholding tax and minimum tax for those sugar dealers who would get themselves registered with the FBR.
The FBR chairman informed the Senate Standing Committee on Finance that sugar dealers held a meeting with the FBR officials to discuss the documentation measures under the Finance Bill 2019.
After introduction of the Finance Bill 2019, the sugar industry itself came to the FBR for discussing the taxation and documentation issues of the sugar sector. The sugar dealers sought waiver from the registration but the FBR rejected this demand, he said.
Zaidi said that the FBR has accepted the demand of the sugar dealers to reduce the said taxes on dealers. This is subject to the condition that the dealers get themselves registered with the FBR. Now they are ready for registration with the FBR. In this regard, an agreement has been reached between the FBR and the sugar dealers.
The FBR chairman said that out of 84 mills, 71 mills have declared losses, which is not understandable. Over 40 percent of the sale of sugar is done through dealers and remaining sugar is directly sold.
The argument of the sugar mills that most of them are in losses is not acceptable to the FBR, he maintained.
In case of registration of sugar dealers, the withholding tax applicable on Fast-Moving Consumer Goods (FMCG) as well as minimum tax would be reduced, Shabbar Zaidi said.
He informed the committee that the FBR is seriously working on a weak area i.e. Commissioner Appeal. The government is working on different proposals to make the forum of Commissioner Appeal independent. The aggrieved taxpayers have to go to the forum of Commissioner Appeal for redressal of their complaints, but if the position of Commissioner Appeal is not independent then there is no purpose of the appeals filed by the taxpayers.
Later talking to media persons, FBR Chairman Shabbar Zaidi said that the FBR will not withdraw condition for CNIC of buyers. The FBR has proposed for disallowing invoice for input adjustments without computerised national identity card (CNIC) of buyers under the Finance Bill 2019.
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