Govt to continue with additional tax on certain income, profits, gains

ISLAMABAD: Despite opposition extended by the Anomalies Committee on the inclusion of 99-D (additional tax on certain income, profits and gains) for bringing up to 50 percent gains under the tax net, the government has decided to keep this proposal intact with some changes for its implementation.

The preceding period might be reduced from five years to two years for implementation purposes but the final decision will be taken after consultation with the federal cabinet. “The tax proposal of 99-D will remain intact with some ring fencing,” said top official sources.

Earlier, the Anomalies committee had recommended to the government to drop this proposal or bring changes in the legislative list by seeking approval of Parliament. However, the government preferred to keep it intact but some changes will be proposed in the finalised Finance Bill 2023-24 on which the approval of Parliament will be sought within the ongoing week. The FBR proposed in the 99-D for imposing additional tax on certain income, profits and gains. Under the Finance Bill 2023-24, it states, “Notwithstanding anything contained in this Ordinance or any other law for the time being in force, for any of the preceding five tax years from tax year 2023 and onwards, in addition to any tax charged, paid or payable under any of the provision of the Ordinance, an additional tax shall be imposed on every person who has any income, profit or gains that have arisen to any person or class of persons due to any economic factor or factors that resulted in unexpected income, profits or gains whether or not disclosed in the financial statements.

(2) Federal Government, may through a notification in the official Gazette - (a) determine economic factor or factors including but not limited to international price fluctuation having bearing on any commodity price in Pakistan or any sector of the economy or difference in income, profit or gains on account of foreign currency fluctuation; (b) provide the rate not exceeding fifty percent of such income, profits or gains; (c) provide for the scope, time and payment of tax payable under this section in such manner and with such conditions as may be specified; and (d) exempt any person or classes of persons, any income or classes of income from the application of this section, subject to any condition as may be specified.”.

According to official announcement made by the government on Tuesday, Federal Minister for Finance and Revenue Ishaq Dar chaired the concluding session of the Business & Technical Anomaly Committees at the Federal Board of Revenue (FBR).

The meeting was attended by SAPM on Finance Tariq Bajwa, RRMC Chairman Ashfaq Tola, the FBR chairman, business leadership and senior officers from the Board.

The Business and Technical Anomaly Committees’ members extended felicitations to the finance minister on presenting a people- and business-friendly budget. They also presented certain suggestions regarding taxation for amendment in the Finance Bill. Dar appreciated their suggestions and assured maximum facilitation of the business community in the federal budget for ease of doing business and prosperity of Pakistan.

FPCCI President Irfan Iqbal Shaikh, FCCI President Khurram Tariq, FPCCI Vice President M A Jabbar, LCCI President Kashif Anwar, Sarhad Chamber President Mohammad Ishaq, Quetta Chamber President Haji Abdullah Achakzai, ICCI President Ahsan Zafar Bakhtwari, Pakistan Business Council Chairman Mohammad Aurangzeb, FPCCI former president Zubari Tufail and others attended the meeting.