Tax return submission to be made mandatory for all TIN holders
Tax holiday for seven new sectors
FE REPORT | Friday, 12 June 2020
Submission of tax returns has been proposed to be made mandatory for all the TIN (Taxpayers' Identification Number) holders, excepting few exceptions, from the upcoming fiscal year (FY).
Finance Minister AHM Mustafa Kamal proposed the measure in the budget for FY 2020-21 on Thursday.
"Due to lax in the existing provisions of the law, around 50 per cent of the TIN holders can now easily afford not to submit tax returns," he said in his budget speech.
Taking undue advantage of the situation, he said, many eligible taxpayers are now avoiding submission of tax return and evading payment of taxes.
He proposed to amend the Income Tax Ordinance to make submission of tax return mandatory for all the TIN holders.
"When comes into force, this provision will potentially seal the scope of tax evasion, and significantly increase the number of return filers," he added.
TIN has made mandatory for those who earned from shared economy using online space, district council chairman and vice-chairman.
He also proposed to introduce a new one-page return form to facilitate return submission by the marginal taxpayers.
He also proposed tax holiday facility for seven new industrial sectors - electrical transformers, artificial fibre or manmade fibre manufacturing, automobile parts and component manufacturing, automation and robotics design, artificial intelligence, nanotechnology, aircraft heavy maintenance service.
TDS rate for ferro alloys, a raw material for steel industry, has been proposed to cut to 3.0 per cent from existing 5.0 per cent.