KARACHI: Sindh Revenue Board (SRB) has announced tax relief package allowing total waiver of penalty and remission of up to 95 percent of the amount of the default surcharge.
A notification issued by the SRB said that the tax payment incentive package provided substantial benefits and relief to the taxpayers, service providers and withholding agents in return of their tax compliance, under the Sindh Sales Tax on Services Act, 2011.
The package included exemption of up to 95 percent of the amount of default surcharge, total remission of penalties and immunity from arrest and prosecution if the taxpayer deposits:
- The liability of the arrears of tax plus five percent of the amount of default surcharge thereon between May 21 to 27, 2018.
- The liability of arrears of tax plus 10 percent of the amount of default surcharge thereon between May 28 to June 03.
- The liability of arrears of tax plus 15 percent of the amount of default surcharge between June 04 to 10; and
- The liability of arrears of tax plus 20 percent of the amount of default between June 11 to 20.
The SRB said that in cases where no tax liability is outstanding but only the arrears of amount of penalty and default surcharge are outstanding, the relief package allows the remission of 90 percent of the amount of such penalty and 75 percent of the amount of such default surcharge, if the balance of the amounts of penalty and default surcharge is deposited during period from May 21 to June 20.
The SBR advised all taxpayers, service providers and withholding agents to avail of the benefits of the said tax payment relief package which shall expire at the close of the June 20, 2018.
The SRB further said that the relief provided an opportunity to the taxpayers who, for any reason, have not been able to clear up their tax liabilities, due to accumulation of penalties and amounts of default surcharge over a period of time. This also may help reduce the litigation in cases where the taxpayers have gone to the courts of law seeking relief on default surcharge or penalty.