KARACHI: Federal Board of Revenue (FBR) has directed customs authorities to provide details of commercial importers who made clearance during first half of current fiscal year.
The FBR sources on Thursday said that the collector of customs is required to collect income advance tax at the rate specified as withholding agent from commercial importers.
Under the law withholding agents are required to provide details of persons whose tax was deducted.
The sources said that the customs authorities as per the law to provide details of all those persons whose tax had been deducted at clearance stage on January 31, 2020.
The sources said that transactions made by commercial importers were very important for broadening of tax base.
Previously, the tax deducted at import stage was final tax and commercial importers were escaped from many questioning.
Through Finance Act, 2018, a minimum tax regime was introduced for commercial importers but due to strong lobby the amendment was withdrawn through Supplementary (Second Amendment) Act, 2019.
Through Finance Act, 2019 the minimum tax was reintroduced for commercial importers and ship breakers for tax collected at import stage.
The intention of legislature to promote documentation of economy by abolishing final tax regime is a positive step.
However, the policy should be implemented consistently to avoid unnecessary confusion, which affects the decision making of the business community.
FBR sources said that it was estimated huge amount of undocumented money was involved in payment of imports. The sources said that the commercial importers would file complete income tax returns and declaration of assets for tax year 2020.
They further said that the FBR and its field offices now can select cases of commercial importers for conducting audit and ask source of money for making payments against imports.
