KARACHI: A meeting was held between Federal Board of Revenue (FBR) and World Bank team on the tax reforms introduced by FBR for medium and small sized companies on Ease of Doing Business. [the_ad id=”31605″]Mr. Abbas Ahmed Mir, Chief (BDT-IT) and Ms. Saba Ijaz, Secretary (BDT-IT) attended the meeting from FBR side.
FBR Officers briefed the World Bank team about the launch of e-payment of taxes through Alternate Delivery Channels (ADC) which came into effect since March 2018.
Through Alternative Delivery Channels, the taxpayers can now pay their taxes through ATM, internet banking or mobile banking which has saved taxpayers time and resources.
FBR team also apprised World Bank team on the reduction of income tax rate from 25% in tax year 2018 to 24% in tax year 2019 for the small companies. Income tax rate will keep on reducing by 1% every year till 2023 when it will be 20%.
On the subject of audit selection of cases, World Bank team was informed that FBR has carried out parametric selection of cases using new business intelligence tools.
The process has significantly reduced the number of cases selected for audit. In Audit Policy 2017, FBR selected 7.5% cases for audit out of the total filers. However, in Audit Policy 2018, FBR has selected 2.3% of income tax cases and 2.5% of sales tax cases for audit out of the total filers.
FBR officers also clarified the Sales Tax Law relating to capital asset purchase and adjustment of input tax under section 8B of Sales Tax Act 1990.