Tax Relief

Authorities needs to grant tax breaks for cooking oil

ISLAMABAD:

The federal government decided on Saturday to reduce the tax burden on prices for edible oil / ghee and steel products and at the same time tighten its control over industrial and commercial consumers who are not branch customers.

The Federal Tax Authority (FBR) has decided to levy an additional sales tax of 5 to 17% on electricity and gas for customers who are not registered in the Active Taxpayer List (ATL).

Previously, the tax on non-compliant customers was 5%.

The measures taken by the government are aimed at broadening the tax base and cracking down on those who do not pay taxes.

The government has also waived an additional 1% tax on the steel sector and the supply of edible oil.

On Friday the FBR issued an SRO 1223 (I) / 2021 amending SRO 648 (I) / 2013.

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According to the notification, no further sales tax would be levied on supplies from the steel sector and supplies from the edible oil sector.

With SRO 1222 (I) / 2021, the federal government levies an additional sales tax on the total amount without the amount of federal taxes in addition to the tax on electricity and gas supplies to persons with commercial or commercial activities, but had not received or was not given a sales tax identification number not in the ATL.

Similarly, commercial consumers are subject to an additional 5% tax on electricity and gas bills of up to Rs 10,000; 7% on bills from Rs10,000 to Rs20,000; 10% on bills from 20,000 to 30,000 rupees and 12% on bills from 30,000 to 40,000 rupees.

The FBR believes that the move would encourage sales tax registration of commercial and commercial consumers and increase their number in the FBR’s ATL, which in turn would generate tax revenue.

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