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Tag: reduced rate

  • FPCCI demands expanding raw material list for reduced income tax rate

    FPCCI demands expanding raw material list for reduced income tax rate

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday urged the tax authorities to expand the list of raw material for purpose of reduced income tax rate at import stage.

    FPCCI President Mian Anjum Nisar while reacting to SRO 1240(I)/2020 dated November 20, 2020 stated that through this notification a very few number of raw material had been added to 12th Schedule for the purpose of reduced income tax rate at 2 percent at import stage.

    The Federal Board of Revenue (FBR) has allowed a list of industrial raw materials for benefits under 12 Schedule.

    The anomalies committee of FBR declared very few raw materials not to be included in the finished goods and allowed to pay 2 percent income tax instead of 5.5 percent this of course resolves an important issue of commercial importers but there is still a long list of raw materials to be considered the same way.

    The FPCCI has been emphasizing for the removal of duties / taxes on the industrial raw materials. However, the SRO 1240(1)/2020 dated 20-11-2020 cover a limited item that does not support industry, while there is an exhaustive list of industrial raw materials already contained in rescinded SRO 1125(1)/2011 dated 31-12-2011.

    In order to further facilitate the industry there is an immediate need to revise the list of industrial raw materials as per SRO 1240(1)/2020 dated 20″ November, 2020.

    FPCCI president strongly recommends addressing the grievances of the industry at the earliest and resolving the issues being faced by the industry through amendments and inclusion of all raw materials in the said SRO.

  • Reduced tax rate criteria for Shari’ah compliant listed companies

    Reduced tax rate criteria for Shari’ah compliant listed companies

    In a bid to promote and incentivize Shari’ah-compliant business practices, the Federal Board of Revenue (FBR) has issued a set of criteria defining the eligibility for reduced tax rates for companies whose shares are traded on a stock exchange.

    (more…)
  • Sindh introduces 5% sales tax reduced rate for healthcare services

    Sindh introduces 5% sales tax reduced rate for healthcare services

    KARACHI: Sindh Revenue Board (SRB) on Thursday introduced a reduced rate sales tax at five percent for various healthcare services with compliance of certain conditions.

    The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

    The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by healthcare centers, gym or physical fitness centers, etc., who have submitted their option or election on Form G as prescribed under rule 42CC of the Sindh Sales Tax on Services Rules, 2011 and fulfill the limitation, conditions and restrictions prescribed in the provisos to sub-rules (4), (5) and (6) thereof.

    The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

    01. The registered person electronically submits his election or option in Form G by the prescribed due date;

    02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

    03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

    04. Input tax credit/adjustment shall not be admissible.

  • SRB announces 5% sales tax reduced rate for personal care services

    SRB announces 5% sales tax reduced rate for personal care services

    KARACHI: Sindh Revenue Board (SRB) on Thursday announced a reduced rate sales tax at five percent for various personal care services with compliance of certain conditions.

    The provincial revenue body issued notification SRB-3-4/7/2020 to announce the reduced rate at five percent instead of 10 percent. The normal sales tax rate on services prevailed in Sindh province is 13 percent.

    The SRB said that the reduced rate of five percent shall be available on the services provided or rendered by such beauty parlours, beauty clinics, slimming clinics, body massage centers, pedicure centers etc. who have submitted their option or election on Form B as prescribed under rule 42C of the Sindh Sales Tax on Services Rules, 2011, and fulfill the limitations, conditions prescribed in the proviso to sub-rules (3A), (3B) and (4) thereof.

    The SRB said that the reduced rate at five percent is to those services on compliance of conditions, included:

    01. The registered person electronically submits his election or option in Form B by the prescribed due date;

    02. The registered person installs Point of Sale (POS) machine for electronic issuance of the invoices or receipts and gets all such machines linked up with SRB web portal to the satisfaction of SRB;

    03. The registered person issues his tax invoices/bills of charges or receipts electronically and no tax invoice/bill of charges or receipts is issued otherwise except through the POS of the registered person; and

    04. Input tax credit/adjustment shall not be admissible.