Business Recorder
SRB announces tax incentive package

SRB announces tax incentive package




RECORDER REPORT

KARACHI: Sindh Revenue Board (SRB) with the approval of the Sindh government has announced ‘Sindh Sales Tax Incentive Package’ for total waiver of penalty and remission up to 95 per cent of the amount of the default surcharge.

According to an official announcement, the decision was made on the request of taxpayers, taxpayers’ associations and Tax Bar.

The SRB with the approval of the Sindh government has announced the ‘Sindh Sales Tax Incentive Package’ through its notification SRB-3-4/7/2017 on May 18, 2017.

This package provides substantial benefits and relief to taxpayers, service providers and withholding agents in return of their tax compliance under the Sindh Sales Tax on Services Act, 2011.

The package includes exemption of up to 95 per cent of the amount of default surcharge, total remission of penalties and immunity from arrest and prosecution if the taxpayer deposits:-

(a) the liability of the arrears of tax plus 5% of the amount of default surcharge thereon between 191h May, 2017 to 25Ih May, 2017;

(b) the liability of arrears of tax plus 10% of the amount of default surcharge thereon between 26th May, 2017 to 2nd June, 2017; and

(c) the liability of arrears of tax plus 20% of amount of default surcharge between 3Td June, 2017 to 9th June, 2017.

In cases where no tax liability is outstanding but only the arrears of amounts of penalty and default surcharge are outstanding, the tax incentive package allows the remission of 90 per cent of the amount of such penalty and 75 per cent of the amount of such default surcharge, if the balance of the amounts of penalty and default surcharge is deposited during the period from May 19, 2017 to June 9, 2017.

SRB has advised all taxpayers, service providers and withholding agents to avail of the benefits of the said package before June 9, 2017. The incentives announced through this concession provide an opportunity to the taxpayers who, for any reason, have not been able to clear up their tax liabilities, added up by default surcharge or, in some cases, the amounts of penalty, over the period involved. This may also help reduce the litigation in cases where the taxpayers have gone to the courts of law seeking relief on default surcharge or penalty.



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