KARACHI: The Federal Board of Revenue (FBR) plans to introduce an amnesty scheme next month for people desiring to whiten their black money, sources said on Saturday.
The amnesty scheme will be offered on lower income tax rates as compared to a similar scheme offered in the past, said a source, who attended the meeting between the FBR chairman and senior tax officials with members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
The source said that the issue of monthly sales tax returns was discussed as the last date to file returns expired on Friday (August 24).
The business community informed the chairman that a large number of taxpayers failed to comply with it due to recent change in the electronic return form.
The business community suggested further extension in the last date to file the sales tax return for the month of July, which was agreed by the chairman, the source added.
An industrialist, who attended the meeting, said that the issue of 0.5 percent withholding tax to be collected by the manufacturers came under discussion during the meeting with the FBR team.
The FBR chairman has been suggested that the withholding tax should not be deducted from buyers, who are sales tax registered or having national tax number, the industrialist said, adding that the chairman has directed team members to discuss the issue with the business community and present a report.
At the meeting, the business community said that through an SRO 727(I)/2011 dated August 1, 2011 sales tax exemption was granted subject to submission of post-dated cheques to the Customs authorities. The securities were refundable on filing of returns.
The FBR chairman said that a number of post-dated cheques were stuck up with the taxation authorities that should be issued immediately.
Ali Arshad Hakeem, FBR chairman; Asrar Raouf, Member IR and tax policy; Rehan Khan, Member (Customs); Khalid Mehmood, Director General, Custom Intelligence and Khwaja Tanveer, DG Intelligence and Investigation represented the revenue body during the meeting.
From the FPCCI side, Tariq Sayeed, leader of the business community and former president of the FPCCI, Shaikh Shakeel Ahmed Dhingra, vice president, FPCCI, Haroon Rasheed, Mian Zahid, Shaukat Ahmed and Khalid Tawab attended the meeting. Later the FBR chairman also holds meeting with the KCCI members.