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Excise notifies FBR of Sindh’s decision to bar taxation for Centre

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The Sindh Excise, Taxation and Narcotics Control has written to the Federal Board of Revenue (FBR) about the provincial government’s decision to no longer collect tax for the federal government, it was learnt on Wednesday. Provincial Minister for Excise and Taxation, Mukesh Kumar Chawla has said in a letter addressed to NAB that the Chief Minister Sindh, Syed Murad Ali Shah has henceforth forbidden tax collection for the federal government and FBR. The Commissioner FBR Karachi has been sent a copy of the letter telling him that the provincial government has barred the department from submitting revenues generated from taxation of vehicle registration, and vehicle ownership transfers will not be handed over to the revenue board. Yesterday, Chief Minister Sindh Syed Murad Ali Shah had announced refusing to collect taxes for Federal Board of Revenue (FBR) under Income Tax Ordinance 2001. The Sindh excise department collects around Rs8 billion in terms of taxes for the federal government. The amount is collected from the registration of vehicles and the transfer of vehicles’ ownership.

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