FBR Likely to Get Power to Notify Minimum Value of Import Goods for Income Tax Collection

The federal government is considering a proposal to empower the Federal Board of Revenue (FBR) to notify the minimum value of certain import goods for collection of true income tax at the import stage to control under declaration. According to sources, currently, income tax on imports is collected at 1 percent, 2 percent, 3.5 percent, 5.5 percent, and 6 percent which is adjustable tax for industrial undertakings for items imported for manufacturing and minimum tax for commercial importers. The proposal was floated as there is under declaration of the value of goods at the import stage which compromises the collection of withholding tax on the actual value of imports. The revenue impact of the said proposals is likely to be over Rs. 20 billion. For live updates on everything about the Federal Budget, visit this link.