ISLAMABAD: The federal government has imposed an additional advance income tax (AIT) up to 35 per cent on the consumption of electricity by persons not appearing on the Active Taxpayers List (ATL).
The additional advance tax has been imposed through the promulgation of Tax Laws (Third Amendment) Ordinance, 2021, according to the text of the ordinance issued by the Federal Board of Revenue (FBR).
In this regard Section, 235 of the Income Tax Ordinance, 2001 has been amended and introduced new clauses to put the burden on persons not filing a declaration of income and assets.
According to the Tax Laws, there shall be collected additional advance tax at the rates given in Division IV of Part-IV of the First Schedule from professionals not appearing on ATL and operating from residential premises having domestic electric connections from electricity distribution companies.
“For the purposes of this sub-section professionals include accountants, lawyers, doctors, dentists, health professionals, engineers, architects, IT professionals, tutors, trainers and other persons engaged in the provision of services.”
The rate of additional advance tax under sub-section (1A) of section 235 shall be collected from the gross amount of the electricity bills at the rates given below: –
01. Where the bill does not exceed Rs10,000: the additional advance tax shall be 5%
02. Where the bill exceeds Rs10,000 but does not exceed Rs20,000: the additional advance tax shall be 10%
03. Where the bill exceeds Rs20,000 but does not exceed Rs30,000: the advance tax shall be 15%
04. Where the bill exceeds Rs30,000 but does not exceed Rs40,000: the advance tax shall be 20%
05. Where the bill exceeds Rs40,000 but does not exceed Rs50,000: the advance tax shall be 25%
06. Where the bill exceeds Rs50,000 but does not exceed Rs75,000: the advance tax shall be 30%
07. Where the bill exceeds Rs75,000: the advance tax rate shall be 35%