FTO to implement tax relief for car purchasers

LAHORE: Federal Tax Ombudsman Dr. Asif Mehmood Jah has said that his department would implement the relief given to thousands of Suzuki car purchasers by the president by declining the FBR appeals seeking sales tax at old rate of 17 per cent.

He was chairing a special meeting Monday on budget proposals of the advisory committee which was participated in by Women Chamber of Commerce President Saima Ali Dada, Sialkot Women Chamber of Commerce President Shamim Aftab, Multan Chamber of Commerce President Khawaja Hussain, Sialkot Chamber of Commerce President Imran Ahmad, Senior Vice President of the Lahore Chamber of Commerce and Industry Aziz Chan, Chairman of the Aptma North Zone Hamid Zaman and noted industrialists, lawyers and businessmen’s representatives from across the country.

Addressing the meeting, FTO Dr Asif Mehmood said the president had allowed new Suzuki car buyers to pay the sales tax at 12 percent, which was reduced by the government in supplementary budget in Febraury from 17 per cent. He said he had ruled that buyers should be given the benefit of reduced tax in case of late delivery, like such buyers were charged the increased rates at the time of delivery.

The issue was raised by hundreds of car buyers complaining that the car company charged the old 17 per cent tax despite delivering the cars after the budget approval. They argued that since the company was responsible for delayed delivery, the current tax should be charged.

The FTO said he ruled that charging old rate was illegal and it should be refunded to the complainant. Similarly, he said the decision on declaring illegal income tax on salaried persons (10 per cent on filers, 20 per cent on non-filers) below 600,000 rupees annual income would benefit millions of people. It was on application by a Radio Pakistan journalist on temporary employment complaining that 17 per cent tax was deducted from his salary every month because the FBR didn't consider him in salaried class, which was in violation of section 12 of the Income Tax Ordinance. This decision would benefit all the contractual employees.