KARACHI: Sindh Revenue Board (SRB) has announced tax incentive scheme and waived up to 100 percent penalty amount on payment of outstanding amount, said a statement on Monday.
The SRB said that acceding to the request of the taxpayers, associations and tax bars, the provincial revenue authority, had issued tax incentive package, which provides substantial benefits and relief to the taxpayers, service providers and withholding agents, in return of their tax compliance, under the Sindh Sales Tax on Services Act, 2011.
The package includes exemption of up to 100 percent of the amount of default surcharge, total remission of penalties and immunity from arrest and prosecution if the taxpayer deposits:
- the liability of the arrears of tax (as outstanding on May 31, 2020) plus zero percent of the amount of default surcharge thereon between June 01, 2020 and June 15, 2020;
- the liability of arrears tax (as outstanding on May 31, 2020) plus five percent of the amount of default surcharge thereon between June 16, 2020 and June 22, 2020; and
- the liability of arrears of tax (as outstanding on May 31, 2020) plus 10 percent of amount of default surcharge between June 23, 2020 and June 30, 2020.
The SRB said that in case where no tax liability is outstanding but only the arrears of amounts of penalty and/or default surcharge are outstanding, tax incentive package allows the remission of 95 percent of the amount of such penalty and 90 percent of the amount of such default surcharge, if the balance of the amounts of penalty and default surcharge are deposited during the period from June 01, 2020 to June 30, 2020.
The provincial revenue authority advised all taxpayers, service providers and withholding agents to avail the benefits of the tax incentive package which shall expire at the close of June 30, 2020.
The incentives announced through the notification provide and opportunity to the taxpayers to get substantial waiver of their liability to pay penalties and default surcharge by depositing the outstanding amounts of tax liabilities during the period the said notification is valid.
The SRB further said that the package may also help in resolution of disputes pending in litigation, appeals, adjudication or audit.