ISLAMABAD - The Federal Board of Revenue (FBR) on Friday extended the Prime Minister’s tax incentive package from another two months giving chance to the non-filer National Tax Number (NTN) holders and undocumented persons to come into the tax net.
The Prime Minister’ tax incentive package was to expire on February 28. However, the FBR has given extension of two months and now the package would expire on April 30 2014. Sources said that Finance Minister Senator Ishaq Dar has given the approval of extending the date of Prime Minister’s tax incentive package from another two months. Earlier, the incentive package, applicable from January 1, 2014, was continued till February 28 (Friday), which was the last date for availing the scheme. Under the scheme, the existing taxpayers are being provided an option to avoid tax audit, but the immunity from tax audit will be given to those taxpayers who pay 25 percent more tax for the Tax Year 2013 than the tax paid or assessed for the previous year. Taxpayers who have already furnished their returns will be eligible to file revised returns to avail the facility. With the intention to increase the number of return filers, increase tax collection and to reduce the gap between the NTN holders and the return filers, an incentive was announced to encourage NTN holders who have not filed income tax returns during last five years to file their returns by exempting them from penalty, additional tax and audit if they file their missing returns of the last five years. However, immunity shall be available only if a minimum tax of Rs20,000 on the basis of taxable income has been paid.