The Federal Board of Revenue (FBR) is not preparing any mini-budget and the draft of the new Ordinance would only extend the date of the Tax Laws (Second Amendment) Ordinance 2022 for the continuation of the additional taxation measures during 2022-23.
Sources told ProPakistani that the FBR has drafted a new ordinance for extension in the date of the Tax Laws (Second Amendment) Ordinance promulgated on August 23, 2022. The new ordinance has been forwarded to the Finance Ministry for onward submission to the National Assembly Secretariat.
However, no new taxation measures are under consideration by the FBR.
“The new ordinance has not incorporated any legal and procedural changes in the tax laws except an extension of the date”, the sources said.
Under the Tax Laws (Second Amendment) Ordinance 2022 additional taxation measures to the tune of Rs. 36 billion were slapped on the tobacco industry.
Moreover, sales tax exemption to single cylinder agriculture diesel engines, exemption of capital value tax (CVT) for the passenger/goods transport vehicles and vehicles of foreign diplomats and foreign diplomatic missions, and restoration of old tax scheme for small traders/retailers prevailing prior to Finance Act 2022 were part of the ordinance.
The Tax Laws (Second Amendment) Ordinance 2022 would expire on December 23, 2022. The National Assembly is expected to pass a resolution giving an extension to the Ordinance for another 120 days.
It is pertinent to mention here that the revenue collection target of the Federal Board of Revenue (FBR) for December has been fixed at Rs. 965 billion, requiring growth of 61 percent.
