Federal Board of Revenue (FBR) has agreed to treat enlisted active tax payers of Azad Jammu and Kashmir and Gilgit-Baltistan as filers, Minister for Sports, Culture and Mangla Dam Affairs, Azad Jammu and Kashmir Chaudhry Saeed said.
In a statement issued here on Thursday, he said FBR has accepted the tax payers list of Azad Jammu and Kashmir (AJK) and Gilgit Baltistan (GB), enabling the them to get benefits of million of rupees in money transactions, registration of vehicles, sale and buying of properties as enjoyed by Pakistani tax payers (filers) in Pakistan.
He said despite having paid same taxes in Azad Jammu and Kashmir, FBR did not recognize them as tax payer in Pakistan, compelling them to pay dual taxes.
The AJK tax payers were excluded from tax payers list of Pakistan since so many years denying various benefits being enjoyed by Pakistani filers.
Pakistani government in budget 2018-19 had decided that the vehicles and properties could only be purchased by tax payers (filers). This created immense problems for AJK businessmen.
He said the AJK government brought the issue into the notice of the previous government of Pakistan Muslim League Nawaz (PML-N), which included a new clause (2) in clause 23 A of finance bill. Despite adding additional clause, AJK businessmen were facing problems in business transactions as they were not in the active tax payer list of FBR. However the issue has now been resolved.
Giving background of the issue, a tax expert said companies/ businessmen, who are residing and filing their income tax returns in AJK- GB, were treated as non filers in Pakistan and were supposed to pay higher rate of withholding taxes in Pakistani territory.
If the name of a taxpayer (filer in AJK) is not appearing in the Active Taxpayer List (ATL) of Pakistan, such taxpayer is treated as a non-filer in the territories of Pakistan and is liable to pay enhanced rates of withholding taxes.—APP