The Senate on Tuesday recommended to the National Assembly that the proposal pending with the Council of Common Interests (CCI) regarding 'uniform tax' on agricultural income should be finalised. Some major amendments in the Income Tax Ordinance 2001 recommended by Senate Standing Committee on Finance have been approved by the Senate here on Tuesday.
Among the approved recommendations, Senate has recommended the National Assembly that the tax difference of 5 percent between a private limited company and a public listed company may be introduced to incentivise companies to opt for listing on stock exchanges of Pakistan from July 1, 2013.
Senate has also recommended the National Assembly that the listed companies with free reserves of more than 50 percent of their paid up capital or the reserve as on June 30, 2013 'which ever is higher' must distribute at least 40 percent of taxed profit as cash dividends to the shareholders.
Senate has further recommended that the rate of tax collected by withholding agents against the sale made to traders and distributors may be reduced from one percent to 0.5 %. The Senate has further recommended to the National Assembly that the incomes from all sources may be brought under the tax net so as to generate revenue for sustainable economic development. The proposal pending with Council of Common Interest with regard to uniform tax on agricultural income may be finalised.
The Senate recommends to the National Assembly that the imposition of the proposal regarding "assessment once amended may not be re-amended except under section 122 (5) and period for such re-amendment of assessment may be reduced to 3 years" may be started from July 1, 2013.
The Senate recommended that the explanation in the Finance Bill 2012-13 may include exemption from Excise Duty: Entry 8 of the table II, of the third schedule, giving retrospective effect to the Amendment from 1st July, 2007, Or an SRO may be issued to the effect. So that LTU in Karachi can withdraw notices issued to the Airlines from the period July, 2008 to 2011.
The Senate recommended to the National Assembly that the rate of custom duty on Petroleum Coke, which is used as a fuel substitute of coal in cement industry, may be reduced from 5% to 0%. The Senate recommended to the National Assembly that Government may encourage compliant tax payers by issuing tax complaint cards, whereby card holders will be given priority in tax refunds, concession in tax rates, quota allocations and speedy processing of cases at appellate forums. The Senate further recommended that that FBR may introduce FBR privilege cards for compliant tax payers who pay over Rs 5 million as Income Tax so that they can get incentives in investments and processing of utility connections.