Tax Amendment Ordinance (TAO) has been corrected to accommodate the reasonable demands of traders, said a press release issued by Federal Board of Revenue.
“Since CNIC disclosure on every sale becoming a major requirement of law, the traders were rightfully demanding a decrease in minimum tax rate as majority of taxpayers were earlier paying minimum tax on grossly suppressed sales. In order to encourage correct declarations, the rate of minimum tax has been rationalised,” the FBR statement read.
“Similarly, medium sized traders have been absolved from their liability as withholding agents to increase ease of doing business. The trade associations are committed to getting all medium and large sized retailers registered with income tax. The associations have also nominated their representatives to evaluate turnover of under declaring business and have also joined hands with FBR for dispute resolution in audits.”
FBR considers that the future of taxation lies in collaboration with taxpayers as opposed to confrontation. “It is likely that this arrangement will achieve a win-win situation for traders and FBR in achieving goals of documentation and reasonable taxation without creating fear and distorted economic behaviour.”
