Karachi, June 03, 2017 (PPI-OT):(1) It is seen that, like in the last year, this year also certain significant importance has been given by enhancing the rates of Tax for Non Filer as compared to the rates of Tax for Filer. It seems and appears that the Government is satisfied by collecting more Tax from the Non Filers without making proper efforts to bring the Non Filers into the tax net.
(2) The persons not required to file return of income are also treated as Non Filers.
(3) First time purchaser or sellers of the Immovable Properties and First time purchaser of Motor Cars.
(4) Section 214D which was very largely expected to be deleted has not been deleted – We feel that this Section 214D fully discourages the persons to late file their return of income, who have not been able to file their return of income, for any reason, in time, for the fear of problems to be faced by them by Automatic Selection of their case for Audit. It is noticed that such persons prefer for NOT TO FILE THEIR RETURNS AT ALL. On the one hand FBR wants to increase the numbers and quantity of returns filed and on the other hand this Section 214D discourages the people to late file their returns. We feel that this Section 214D has brought very negative impact and was supposed to be deleted.
(5) With Holding Agents problems and Monitoring. They incur lot of costs for withholding the taxes for the Government but get no rewards. On the contrary face coercive measures such as recovery from them, additional surcharge if not paid within specified time, fulfill obligation of filing monthly statements and heavy penalties.
(6) Our very genuine suggestion of extending the dates of filing the Monthly Statements of WHT to 25th day of each month, instead of now at 15th of each month. For the reason of it being very near to the date (of 18th each month) of filing the monthly Sales Tax Returns. Though there was no loss of revenue from this change.
(7) Penalties under Section 182 was very much expected to be reduced, but has NOT been reduced at all.
(8) Minimum Tax rate increased at 1.25% that has started from 0.50%.
(9) Rate of increase in WHT on Dividends from 12.50% to 15%, particularly for the Senior Citizens earning Finally Taxed Income. Their net income shall reduce considerably that may create lot of problems for them.
(10) Tax Credit for Non Profit Organizations – Proposal of condition of Administrative and Management Expenses not to exceed 15% of Total Receipts for claiming the Tax Credit for the Non Profit Organizations and the proposal to tax their, statutorily defined Surplus Funds at 10%. We feel these proposals to be very harsh that will effect the normal working of the NPO’S.
For more information, contact:
Karachi Tax Bar Association (KTBA)
Bar Chambers, New Income Tax Building,
Shahra-e-Kamal Ataturk, Karachi