KTBA seeks payment extension in amnesty scheme

KARACHI: The Karachi Tax Bar Association (KTBA) on Thursday wrote a letter to the Federal Board of Revenue to extend the date for making outstanding payment under the amnesty scheme till December 31, 2020 without default surcharge.

In a letter written to the FBR chairperson, the KTBA said the due date of payment of tax under section 6 of the Assets Declaration Ordinance 2019 (ADO, 2019) was June 30, 2019. A declarant was also provided an option to pay the tax on deferred payment basis in instalment till June 2020.

This late payment, however, had to be made along with default surcharge at the rates given in Clause (2) of the schedule.

The maximum rate of default surcharge was 40 percent, which would apply if the tax payment was made by June 30, 2020.

The tax bar said the current pandemic has affected the life and business of every individual adversely and taxpayers were not an exception.

The fall out of the cessation of business activities in the last three months due to intermittent lockdown orders has affected people’s taxpaying capacity as well.

“It has become quite difficult for the taxpayers to make the payment of tax as per the proviso discussed above, by June 30, 2020,” the KTBA said.

The KTBA urged the FBR to extend the due date for payment up to December 31, 2020 without additional payment of default surcharge. Alternatively, the KTBA suggested the FBR to allow adjustment of the payment against claims of taxpayers.