The Federal Board of Revenue (FBR) Friday fixed values of minerals extracted, produced, dispatched and carried away from the licensed or leased areas of the mines for collection of advance tax. According to amendments made to the Income Tax Rules, 2002 through an S.R.O.140(1)/2020 issued here on Friday, the FBR has also announced that advance tax shall be collected by the provincial authorities to recover royalty on minerals excavated and transported from leased areas.
There shall be collected advance tax at the rate specified in Division XXVI of Part-IV of the First Schedule on the value of minerals extracted, produced, dispatched and carried away from the licensed or leased areas of the mines.
Advance tax shall be collected by the provincial authority collecting royalty per metric ton from the lease-holder of mines or any person extracting minerals. Advance tax collected under this section shall be adjustable, the FBR said.
According to S.R.O.140(1)/2020 issued here on Friday, advance tax shall be collected by the provincial authority or a person authorized by the provincial authority to collect or recover royalty on minerals excavated and transported from leased area.
Where a person having authority to collect or recover royalty on behalf of the provincial authority fails to collect tax as required; or having collected tax fails to pay the tax to the Commissioner as required under section 160, the person having authority to collect or recover royalty as well as provincial authority shall be jointly and severally liable to pay the amount of tax to the Commissioner who may pass an order to that effect and proceed to recover the same, the FBR added.
The FBR has also fixed values of minerals for the purpose of sub-section (4) of section 236V of the Income Tax Ordinance, 2001. The values of minerals specified would be used for the purposes of sub-section (4) of section 236V of the Income Tax Ordinance.
The FBR has also fixed values of 56 different kinds of minerals including Argilaceous clay; Asbestos; Antimony; Agglomerate; Barite; Basalt; Bentonite; Bauxite; Bajri; brine/salt; Barytes; Ball clay and others.