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FBR urged to extend date for tax amnesty payment

FBR urged to extend date for tax amnesty payment

KARACHI: Karachi Tax Bar Association (KTBA) has urged Federal Board of Revenue (FBR) to extend the date for making payment for amnesty scheme declarants.

The KTBA in a letter to FBR chairperson on Thursday pointed out that the due date of payment of tax under section 6 of the Assets Declaration Ordinance, 2019 (“ADO, 2019”), which in terms of section 6 of the ADO was June 30, 2019.

A declarant was also provided with an option to pay the tax on deferred payment basis in installment till the date of June 2020.

This late payment, however, had to be made along with default surcharge at the rates given in Clause (2) of the Schedule to the ADO, 2019.

The KTBA said that the maximum rate of default surcharge is 40 percent which would apply if the tax payment is made by 30 June 2020.

The ongoing circumstances in the wake of current pandemic of COVID-19 which, undisputedly, has affected the life and business of every individual, adversely and taxpayers are no exception.

The fall out of the cessation of business activities in the last three (03) months due to intermittent lockdown orders has effected every ones’ 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 30 June 2020,” the KTBA said.

In this connection, on behalf of our members, we would suggest that the following may be considered:

1. the due date of payment of tax may be extended up to 31 December 2020 without increasing the rate of default surcharge further

2. allow adjustment from tax refund, if any, available to the taxpayer, against the aforesaid payment.

The measures will not only repose confidence to the taxpayers but will also show the resolve of the FBR to address a genuine issue.