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Retailers to Pay Double Amount of Fixed Tax if not appearing on the Active Taxpayers List (ATL) |
In this regard certain amendments have been made to Sales Tax Act,
1990 and Income Tax Ordinance, 2001.
In sub section 9, Section 3 of Sales Tax Act, 1990, a new proviso
has been inserted through the Finance Act, 2022, which stated:
“Provided that the above rates of tax shall be increased by one
hundred percent if the name of the person is not appearing in the Active
Taxpayers List issued by the Board under section 181A of the Income Tax
Ordinance, 2001 on the date of issuance of monthly electricity bill.”
Similarly, a new Section 99A has been inserted to the Income Tax
Ordinance, 2001 and approved through the Finance Act, 2022, which is as follow:
“99A. Special provisions
relating to payment of tax through electricity connections.
(1) Notwithstanding anything contained in the Ordinance, a tax
shall be charged and collected from retailers other than Tier-I retailers as
defined in Sales Tax Act, 1990 (VII of 1990) and specified service providers on
commercial electricity connections at the rates provided in clause (2A) of
Division IV, Part IV of the First Schedule.
(2) A retailer who has paid sales tax under sub-section (9)
of section 3 of Sales Tax Act, 1990 (VII of 1990), shall not be required to pay
tax under this section and the sales tax so paid shall constitute discharge of
tax liability under this section.
(3) The tax collected or paid under this section shall be final
tax on the income of persons covered under this section in respect of business
being carried out from the premises where the electricity connection is
installed.
(4) For the purposes of this section, Board with the approval of
the Minister in-charge may issue an income tax general order to-
(a) provide the scope, time, payment, recovery, penalty, default
surcharge, adjustment or refund of tax payable under this section in such
manner and with such conditions as may be specified.
(b) provide record keeping, filing of return, statement and
assessment in such manner and with such conditions as may be specified;
(c) provide mechanism of
collection, deduction and payment of tax in respect of any person; or
(d) include or exempt any person or classes of persons, any income
or classes of income from the application of this section, in such manner and
with such conditions as may be specified.”
The rate of tax leviable under section (99A), and collectible under sub section (1A) of Section 235 shall be as under:-
retailers and specified service providers, a ‘final tax’ is to be charged on the basis of gross amount billed for commercial electricity connections at the following rates:
|
S. No |
Gross amount of monthly bill |
Tax (Rupees) |
|
1 |
Where the amount does not exceed Rs. 30,000 |
3,000 |
|
2 |
Where the amount exceeds Rs. 30,000 but does
not exceed Rs. 50,000 |
5,000 |
|
3 |
Where the amount exceeds Rs. 50,000 but does
not exceed Rs. 100,000 |
10,000 |
|
4 |
Specified retailers and service providers through
Income Tax General Order |
50,000 |
