The government will notify new tax rates for trades under the fixed tax scheme from October 1, 2022, and old tax rates (prior to budget 2022-23) will continue during July-September 2022.
Sources told Propakistani that four major decisions were taken during the last meeting to finalize sales tax collection through electricity bills held at the ministry of finance to finalize collection of sales tax through electricity bills. The meeting was presided over by the Finance and Revenue Minister Miftah Ismail.
The major decisions were as follows:
- the fixed tax scheme introduced through Finance Act, 2022 will be rolled back ab initio and the retailers will continue to pay taxes as per the previous (pre-budget) mechanism and rates.
- for the next three months i.e. July to September 2022, the previous tax rates will continue to apply to the retailers.
- the government will review the situation and will notify new tax rates effective from 1st October 2022.
- for the reversal of the fixed tax scheme, necessary legislation will be enacted by the FBR as soon as possible.