Tax laws

Tax Laws Ordinance 2021 (Third Amendment): 7 new measures introduced to broaden the tax base


ISLAMABAD: The government introduced seven new measures to broaden the tax base through the Tax Laws (Third Amendment) Ordinance, 2021.

Under the new section 114B of the Income Tax Ordinance 2001, the Council will have the power to issue a general income tax ordinance in respect of persons not listed. on the ATL but are required to file a declaration under the provisions of this Ordinance. The general income tax decree may have consequences for the persons mentioned in it: Disabling cell phones or cell phone SIMs; interruption of the electricity connection; and the interruption of the gas connection.

The authority or the commissioner having jurisdiction over the person mentioned in the general ordinance of the income tax can order the restoration of the mobile telephones, the mobile telephony SMS and the electricity and gas connections, in the cases where he is satisfied that the declaration has been filed; or the person was not required to file a declaration under the provisions of this Ordinance.

No one may be included in the general order unless the following conditions have been met: The notice under subsection (4) of section 114 has been issued; the compliance date for the notice under subsection (4) of section 114 has expired and the person has not filed the return. The action under this article does not exclude any other action provided for by the provisions of this ordinance.

Ordinance Enacted: Tax Non-Filers Face Strict Actions

According to the Tax Laws (Third Amendment) Ordinance 2021, the RBF has been granted the power to shut down gas and electricity connections from people, including Level 1 retailers, who are not registered or , if registered, not integrated under section 3 (9A).

Second, the government has increased the amount of penalties for level 1 retailers, which are not integrated under section 3 (9A)

Third, powers have been given to the FBR to shut down gas and electricity connections to people, including Level 1 retailers, who are not registered or who, if registered, are not integrated. under section 3 (9A).

Fourth, the government has increased the amount of penalties for Level 1 retailers, which are not integrated under section 3 (9A).

Fifth, the RBF has improved the rates of the additional tax on industrial and commercial gas and electricity connections to unregistered persons (modification of SRO 509 (I) / 2013, of 12.06.2013).

Sixth, the government has included the “steel” sector in clause 24D in order to offer a reduced rate of minimum turnover tax to distributors, resellers, sub-resellers, wholesalers and retailers on the same basis as the sector. cement.

Seventh, powers have been given to the RBF to turn off cell phones / SIMs, disconnect electricity and gas from those who are required to file.

Draft new tax ordinance: the government revisits certain clauses

Eighth, NADRA will share data with RBF for broadening the tax base, calculating indicative income and identifying potential tax evasion.

The RBF also introduced an enabling provision to facilitate the online market as a withholding agent under the Eleventh Schedule of the Sales Tax Act, 1990

In accordance with the Tax Laws (Third Amendment) Ordinance 2021, in the case of an online marketplace facilitating the sale of third party goods, the obligation to withhold tax on taxable supplies of that party at the rates specified in the eleventh annex to this Law, is the responsibility of the operator of this marketplace.

Copyright Business Recorder, 2021


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