ISLAMABAD, Aug 18 (APP):The legislative and policy framework initiatives taken by the Federal Board of Revenue (FBR) during previous two years have helped increasing the number of tax filers in the country.
According to “2 Years Performance Report” launched by the government here on Tuesday, FBR had introduced Asset Declaration Ordinance, 2019 on May 15, 2019 which remained successful as over 124,584 declarations were filed under the amnesty scheme 2019, which were 59 per cent higher than the declarations filed under the amnesty scheme, 2018.
To promote inflow of home remittances through formal channels and to incentivize financial inclusion, exemption of withholding tax on cash withdrawal and transfer from a domestic bank account to the extent of amount of remittance received from abroad in such account in a year has been provided through Finance Act, 2020.
According to the report, certain amendments in the Income Tax Ordinance, 2001 have been made through the Finance Act, 2020 which are aimed at incentivizing investment in government debt instruments by non-residents and aligning the tax incidence on non-residents investing in such instruments through a foreign bank account, a Non-Resident Rupee Account Repatriable (NRAR) or a Foreign Currency Account maintained in Pakistan.
In light of the COVID-19 pandemic the federal government issued various SRO’s for granting certain tax concessions/exemptions aimed at alleviating the adverse effects of the pandemic.
In order to facilitate compliant taxpayers, advance tax on tuition fees shall only be collected from persons whose names are not appearing on the Active Taxpayers List.
To facilitate individuals, salaried persons and business in filing of tax returns, a tax return mobile app was launched.
This measure resulted in increase in the number of income tax return filers by 37 per cent in one year.
In order to facilitate taxpayers and reduce the burden on the formal appeal system, amendment has been introduced to give legal cover to negotiated assessment. This shall reduce cost of litigation for taxpayers.
Prime Minister announced a construction package to boost the country’s economy and to create new job opportunities.
Such incentives were given legal cover through the promulgation of Tax Laws (Amendment) Ordinance, 2020 and were later incorporated in Finance Act, 2020, it added.