Commercial importers would be required to file a return of their income instead of filing a statement in terms of Section 148, sub-section (7) & (8) if the proposal, in Finance Bill 2009, placed before the National Assembly on Saturday is approved. Tax payable at import stage is presently treated as final tax in respect of commercial importers and advance tax by an industrial undertaking.
The conceptual shift from "final" to "minimum" tax proposed in sub-section (7) and (8) of Section 148 will result in the above noted change in filing of return. Additionally, tax, payable at the import stage by all classes of taxpayers has been proposed to be raised to four from two percent presently in force.
In another amendment in sub-section (8) importers of edible oil shall also be deemed to have paid "minimum tax" as opposed to the same being currently treated as "final tax" on account of tax paid at the import stage. In another amendment "packing material" imported by commercial importers and industrial undertaking will deemed to have paid "minimum tax" in respect of such import. For industrial undertaking this four percent levy will be treated as advance tax.
This amendment is aimed at edible oil importers, however, the Bill does not provide any qualifying criteria with regard to class of taxpayer or the use thereof of the packing material. The bill also proposes that the paid-up capital and the total assets threshold of large import houses be raised from Rs 100 million on both counts to Rs 250 and Rs 350 million respectively.