The Federal Board of Revenue (FBR) will announce special incentives for taxpayers who would prefer e-filing and timely paying one percent special excise duty (SED) in returns to be filed by September 15, 2007. Sources told Business Recorder on Sunday that the board would shortly issue notifications to facilitate the business community.
First, the board has decided to extend date for filing of sales tax and federal excise returns from September 15 to 20 for those non-corporate taxpayers, e-filing returns. It would be an incentive for non-corporate taxpayers to file returns electronically under the new system.
Secondly, the board has decided not to charge penalty and default surcharge on payment of SED for July and August in the returns to be filed in September 2007. The decision has been taken to facilitate the taxpayers who failed in depositing SED for both July and August 2007. Now, penalty and default surcharge would not be applicable in cases where SED is duly paid in September.
Thirdly, the board has accepted a major demand of taxpayers for obtaining sales tax refund on zero-rated supplies made to the registered or un-registered persons. The board has restored the pre-budget 2007-08 status through amendment in the Sales Tax Rules 2006.
Sources said that the board had notified in the 2007-08 budget that refund against local supplies would be available to the registered persons. The board had received a number of complaints about problems being faced due to restriction of refunds in case local supplies are made to the registered persons only. Now, the board has reversed the decision to facilitate the local industry.
According to the amendment, the refund would be available to the registered persons who acquire tax paid inputs for use thereof in the manufacture of goods chargeable to sales tax at the rate of zero percent under the Sales Tax Act or a notification issued thereunder.