Tax laws regarding non-filers, filers amended

ISLAMABAD (92 News) - Tax laws regarding non-filers and filers have been amended.

As per new powers given to the government, under the amendment in the tax laws, non-filers will be arrested immediately for tax evasion of Rs25 million and filers for Rs100 million. According to the document, this authority will be vested in a committee comprising the finance minister, the FBR chairman and the most senior member.

According to the documents, the arrest will be made with the written permission of the committee. Post-arrest proceedings will be instituted under the Sales Tax Act.

Both tax evasion reports and arrests will be subject to the same act. Allegations of tax evasion must prove that the crime was intentional. Merely failing to document a tax will not result in an arrest. No further arrest warrant will be required after a notice is issued under tax evasion laws.

Earlier, a special tax system has been introduced for small and medium scale industrialists.

According to the details garnered, a special tax system has been introduced for 25 small and medium scale industrialists. National Savings Certificate 30 per cent withholding tax was levied on each non-filer.

Now, new system will be applicable on the sellers up to Rs10 million. The industrialists of this category will no longer be included in the small industry. Such industrialists are divided into two groups under this tax system.

Those who sell up to Rs10 million will have to pay 7.5 per cent tax. The industrialists who sells up to Rs10 million to Rs25 million will have to pay 15 per cent tax.

On the other hand, the government has imposed a withholding tax on profits from national savings schemes. 30 per cent withholding tax has been levied for each non-filer for national savings certificate. Now, tax will be levied on Rs100,000 instead of profits up to Rs500,000. The move is aimed at discouraging black money and preventing money laundering.