The draft of the new Ordinance would simply postpone the effective date of the Tax Laws (Second Amendment) Ordinance 2022 to allow for the continuance of the increased taxing measures for 2022–2023. The Federal Board of Revenue (FBR) is not planning any mini-budget.
According to sources, the FBR has developed a new ordinance seeking an extension of the Tax Laws (Second Amendment) Ordinance’s effective date, which was set to take effect on August 23, 2022.
The Finance Ministry has received the revised ordinance and transmitted it to the National Assembly Secretariat.
The FBR, however, is not considering any new taxes policies.
“The new ordinance has not incorporated any legal and procedural changes in the tax laws except an extension of the date”, the sources said.
The tobacco business was subject to increased taxes measures of Rs. 36 billion under the Tax Laws (Second Amendment) Ordinance 2022.
As part of the ordinance, sales tax exemptions for single-cylinder agricultural diesel engines, capital value tax (CVT) exemptions for vehicles used for transporting people and goods as well as vehicles used by foreign diplomats and foreign diplomatic missions, and the restoration of the small business tax structure that existed before Finance Act 2022 were also included.
On December 23, 2022, the Tax Laws (Second Amendment) Ordinance 2022 would expire.
It is anticipated that the National Assembly will approve a resolution extending the Ordinance for an additional 120 days.
It is important to note that the Federal Board of Revenue’s (FBR) target for revenue collection for December has been set at Rs. 965 billion, necessitating growth of 61 percent.
To read our blog on “FBR introduces a Digital Clearance System for customs at the Sost dry port,” click here.
