The Federal Board of Revenue (FBR) has decided to retain the powers of the federal government to amend and modify various schedules for charging the rate of tax/duty and mode of taxation.
The tax department has written a letter to Consultant Inland Revenue Code Islamabad Dr. Muhammad Iqbal on drafting of Inland Revenue Code.
The board has made certain key decisions for the drafting of harmonized Inland Revenue Code (IRC) and Dr. Iqbal has been asked to incorporate the decisions into the IR Code and communicate any issue that may require deliberations at the Board level.
Charging Section
In unified law, a single segregated charging provision may be introduced wherein chargeability of all four taxing statutes may be established. Similarly, powers of the federal government to amend and modify various Schedules for charging the rate of tax/duty and mode of taxation shall be retained.
Authorities Powers & Functions
The officers of directorates are designated as authorities within the provision stipulating the Inland Revenue authorities. Those directorates that are not involved directly in taxation-related activities like research and training may be kept as directorates.
Common Concept of Person
The concept of “Person” should be introduced as a common identifier across all laws and the centrality accorded to “Registered Person” under the Sales Tax Act is to be done away with. Further, the charge will be created on any person who fulfills the conditions leading to the imposition of charge without the requirement of being formally registered first.
Delegation of authority
The concept of Deputy Commissioner is introduced in the Inland Revenue Code. This may include Assistant Commissioner and Officer Inland Revenue and the concept of delegation may be done away with.
Savings
For the saving clause option of having old substantive law with the procedure of new law shall be adopted.
