Circular No, 09 of 2022-23, Islamabad, the 21st July, 2022

SROS: Circular No, 09 of 2022-23, Islamabad, the 21st July, 2022 Finance Act, 2022 - Explanation of Important Amendments in Sales Tax Act 1990, Federal Excise Act, 2005 and ICT (Tax on Services) Ordinance, 2001 Government of Pakistan Revenue Division Federal Board of Revenue Inland Revenue C. No. 3(1)ST-L P/2019 Islamabad, the 21st July, 2022 Circular No, 09 of 2022-23 Sales Tax, Federal Excise and ICT (Tax on Services) Subject: Finance Act, 2022 - Explanation of Important Amendments in Sales Tax Act 1990, Federal Excise Act, 2005 and ICT (Tax on Services) Ordinance, 2001 In order to achieve economic stability and revenue maximization as well as for simplification of revenue laws for the taxpayers, certain amendments/insertions/additions have been made in Sales Tax Act, 1990 (hereinafter referred to as “STA”), Federal Excise Act, 2005 (hereinafter referred to as “FEA”) and Islamabad Capital Territory (Tax on Services) Ordinance, 2001 (hereinafter referred as TCTO”) through the Finance Act, 2022. 1. Fixed Tax Regime for Retailers and Specific Sectors: The fixed tax regime for the retailers has been rationalized and now instead of percentage of the amount of monthly electricity bill, tax shall be charged on their monthly electricity bills as; Rs. 3000 for monthly bill upto Rs. 30,000, Rs. 5,000 if the monthly bill exceeds Rs. 30,000 but does not exceed Rs. 50,000 and Rs. 10,000 for monthly bill over Rs. 50,000. This shall constitute full and final discharge of tax liability of such persons under both Income Tax Ordinance, 2001, and STA. However, these tax amounts shall be doubled if the name of the retailer is not appearing on the Active Taxpayers List (ATL) issued by the Board under section 181A of the Income Tax Ordinance, 2001 on the date of issuance of monthly electricity bill. In addition to the above, the Board has been empowered to notify through an STGO persons or class of persons required to discharge their sales tax liability through payment of a fixed amount along with their monthly electricity bills. 2. Revamping of Alternate Dispute Resolution Mechanism Through the Finance Act, 2022, the mechanism of alternate dispute resolution has been revamped.…