ISLAMABAD (June 16 2004): To facilitate the business community, the Central Board of Revenue (CBR) has announced withdrawal of “further tax” on all the supplies made from June 12, 2004 instead of July 1.
Official sources told Business Recorder here on Tuesday that the CBR would bear the revenue loss for 18 days of June to give relief of further tax to the businessmen.
Under the relief package to the agriculture sector, the supplies of pesticides made to the unregistered people is also exempted from further tax from June 12.
Similarly, reduction in the activation charges on mobile phones from Rs 2,000 to Rs 1,000 would also be applicable from June 12.
The CBR has yet to get approval of the National Assembly regarding taxation measures proposed in the budget, but the relief of “further tax” exemption has been given from June 12, 2004.
In another relief measure, a uniform rate of 15 percent sales tax would be applicable replacing higher rate of 18, 20 and 23 percent.
The CBR has also withdrawn 20 percent general sales tax (GST) on all the items liable to this higher rate of sales tax.
Over 228 items/raw materials were liable to 20 percent GST which not only increased up front cost of the industries, already facing serious challenges from cheaper imports, but also gave rise to refunds in certain essential industries.
The CBR has decided to abolish the higher tax rate of 20 percent to provide relief to the consumers.