ISLAMABAD: The government has increased the advance tax by 900 percent (nine times) at the time of renewal of license by middleman of a commodity markets in agriculture sector.
The tax rates have been increased through Finance Bill, 2019 and may be applicable from July 01, 2019.
The Federal Board of Revenue (FBR) said that presently every market committee is required to collect advance tax from dealers, commission agents and arhatis at the time of issuance or renewal of licenses.
Now the tax rates are being increase for:
Class A from Rs10,000 to Rs100,000/-,
Class B from Rs7,500 to Rs75,000/-,
Class C from Rs5,000/- to Rs50,000; and
for any other category from Rs5,000/- to Rs50,000/-.
The tax has been collected under Section 236J of Income Tax Ordinance, 2001.
According to the section:
“236J. Advance tax on dealers, commission agents and arhatis etc.— (1) Every market committee shall collect advance tax from dealers, commission agents or arhatis, etc. at the rates specified in Division XVII of Part-IV of the First Schedule at the time of issuance or renewal of licences.
(2) The advance tax collected under sub-section (1) shall be adjustable.
(4) In this section “market committee” includes any committee or body formed under any provincial or local law made for the purposes of establishing, regulating or organizing agricultural, livestock and other commodity markets.”