Sindh sales tax incentive package

79

Karachi

Acceding to the request of the taxpayers, Taxpayers’ Associations and Tax Bar, the Sindh Revenue Board, with the approval of the Government of Sindh, has issued Tax Incentive Package, which provides substantial benefits and relief to the 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% 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 19thMay, 2017 to 25thMay, 2017; (b) the liability of arrears of tax plus 10% of the amount of default surcharge thereon between 26thMay, 2017 to 2ndJune, 2017; and (c) the liability of arrears of tax plus 20% of amount of default surcharge between 3rdJune, 2017 to 9thJune, 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% of the amount of such penalty and 75% of the amount of such default surcharge, if the balance of the amounts of penalty and default surcharge is deposited during the period from 19thMay, 2017 to 9thJune, 2017.
SRB has advised all taxpayers, service providers and withholding agents to avail of the benefits of the said Tax Incentive Package which shall expire at the close of the 9thJune, 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.—PR