FBR to introduce special incentive scheme

0
53

Federal Board of Revenue (FBR) is likely to introduce a special lottery or incentive scheme to encourage General Sales Tax (GST) registration. The board would formulate a ‘two taxes vision’, which would be taken forward for the long term, Profit learnt on Friday. Official documents indicate that in the recent Tariff Reform Committee Group meeting, it has been decided that FBR’s Special Initiatives Group will conduct a study of three countries, which have launched incentive schemes for sales tax registration and come up with an effective lottery scheme.
Documents state that initially the scheme would be introduced in Islamabad only in the pilot phase since sales tax on services had become a provincial subject after the passage of National Finance Commission (NFC) award. It further shows that FBR Member Enforcement and Accounting would provide update on the study in the next meeting. It shows that the FBR’s Tax Policy Group has been assigned to develop two taxes vision and develop a long-term policy. In addition, FBR has been asked to compile a comprehensive report on human resource reforms and FBR Director General (HRM) will give a presentation in the next meeting.