Formulation of Inland Revenue Code Unlikely by This Julyz Tax Act of 1990, and the Federal Excise Act of 2005 by July 1, 2022. This activates the tooltip.
After the meeting on the formulation of the Inland Revenue Code held at the FBR Headquarters here on Saturday, a participant told Propakistani that discussions on the simplification of the Inland Revenue Code are ongoing, but that it may not be implemented until July 1, 2022.
Harmonizing the Income Tax Ordinance of 2001, the Sales Tax Act of 1990, and the Federal Excise Act of 2005 is a difficult process. There are also Income Tax Rules for 2002, Sales Tax Rules for 2006, Federal Excise Rules for 2005, and Islamabad Capital Territory (Sales Tax on Services) Rules for 2001. The harmonization and simplification of these laws would alter the language of the Income Tax Ordinance of 2001, the Sales Tax Act of 1990, and the Federal Excise Act of 2005.
As a result, redrafting or combining all laws is a complex process. It would also take more time for stakeholders to comprehend the revised, merged, or simplified legislation.
Dr. Muhammad Ashfaq Ahmed, Chairman of the Federal Board of Revenue (FBR), reviewed the progress of the Inland Revenue Code on Saturday. In this regard, the FBR Chairman has called a meeting at the FBR Headquarters with the expert team of drafters.
The FBR intended to implement a new harmonized and simplified Inland Revenue Code on July 1, 2022, by combining the Income Tax Ordinance of 2001, the Sales Tax Act of 1990, the Federal Excise Act of 2005, and the Islamabad Capital Territory (Sales Tax on Services) Ordinance of 2001. However, sources stated that the exercise would take some time to complete.