Difficulties in collecting Rs 560 billion in a week to achieve the revenue target. Photo: File
Islamabad: The Supreme Court yesterday granted interim relief against the 20 percent income tax on real estate, which will partially reduce revenue collection.
A special bench headed by Chief Justice Umar Atta Bandial ordered taxpayers to pay only 50 percent of income tax pending the Supreme Court’s final decision. But also gave some harsh remarks.
According to the interim decision, the Supreme Court restrained the FBR from taking action against the taxpayers for depositing half of the tax. Also inquired about the constitutional mandate of
The Supreme Court during the hearing remarked that the FBR is not a reliable institution and it is again burdening the tax payers.
FBR is facing a difficult phase of collecting Rs 560 billion in a week to achieve the revenue target in nine months.
The realty and manufacturing sectors filed petitions against Section 7E, which was introduced by the government in June last year to impose a tax on those who earned income equal to 5 percent of the fair market value of capital held in Pakistan. , they will be charged 20% tax.
Meanwhile, the FBR says that the effective tax rate is 1 percent, which aims to raise an additional revenue of Rs 15 billion.
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