Karachi: The Sindh Revenue Board (SRB) on Monday announced the Sindh Sales Tax Incentive Package to broadly facilitate local consumers and vendors, a news source reported. The package features a total waiver on penalties and remissions up to 100% of default surcharge amounts.
According to details, the Sindh Sales Tax Incentive Package will provide significant relief and benefits to taxpayers, withholding agents, and service providers – subject to tax compliance – as per the Sindh Sales Tax on Services Act.
Further, the announced package provides relief up to 100% of the default surcharge amount, a total cancellation of penalties, and immunity from arrest and prosecution if the taxpayer submits the following:
liability on the arrears of tax (outstanding on May 31, 2020) and 0% of the default surcharge amount for the period between June 1, 2020 and June 15, 2020
liability on arrears of tax (outstanding on May 31, 2020), along with 5% of the default surcharge amount for the period between June 16, 2020 and June 22, 2020
liability of arrears of tax (outstanding on May 31, 2020) and 10% of the default surcharge amount for the period between June 23, 2020 and June 30, 2020
Additionally, the Sales Tax Incentive Package includes a remission of 95% of the penalty amount in cases where the taxpayer has no outstanding tax liabilities but only arrears on penalty amounts and/or default surcharges. The package also allows cancellation of 90% of the amount of such a default surcharge when the taxpayer has paid the amount of the penalty and default surcharge during the period from June 1, 2020 to June 30, 2020.
The SRB has asked all service providers, withholding agents, and taxpayers to use the incentive package before it expires on June 30, 2020.
