Islamabad: The Federal Board of Revenue (FBR) recently notified that it would not provide any input tax adjustment concessions to manufacturers who continue to sell goods worth (and over) PKR 10 million per month to unregistered distributors, according to news sources. FBR Member Inland Revenues (Policy) Dr Hamid Ateeq Sarwar revealed this information during a press briefing held on Wednesday.
He stated that the taxation agency wanted to bring major distributors into the national tax net without making any concessions to its Computerised National Identity Card (CNIC) display condition for traders. To facilitate this measure, the executive recently introduced an amendment into the country’s taxation laws through a Presidential Ordinance.
While explaining the salient features of the Tax Laws (Second Amendment) Ordinance 2019, he said that distributors who made purchases worth PKR 10 million on a monthly basis to PKR 100 million on annual basis would not be grated input adjustments.
Dr Hamid further stated that FBR’s current revenue collection stood at PKR 2,083 billion in the first half of the financial year (2019-20) against the revised target of PKR 2,198 billion for the same duration. He revealed that the number of return filers stood at 2,150,000 till December 21, 2019, against the 1,562,000 filers in the same period of last year.
Regarding another clause of Presidential Ordinance, he informed that Clause 9A of Part III of Second Schedule offered a 50% exemption on capital gains tax (CGT) derived on the first sale of immovable property acquired or allotted to ex-servicemen and serving officials of the armed forces, federal and provincial governments, being the original allottees of immovable property. The capital gains have been further exempted up to 75% in case the property is sold after the completion of three years from the acquisition date, under the ordinance.
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