KARACHI: Federal Board of Revenue (FBR), through a notification, has directed its officials to use the online system facility for tax demand creation to eliminate chances of miscalculation.
According to the RTO-III Karachi, FBR’s web portal calculated the corporate tax liability at 25 percent despite that the said company didn’t fall under the category of small enterprise.
Corporate tax rate on a large-size company is higher than a small company. The government, in the budget announcement for fiscal year 2017-18, reduced the corporate tax rate for corporate sector other than banking companies to 30 percent, effective from the tax year 2018. It gradually brought the tax rate down to this level from 35 percent four years back.
FBR in a separate notice, however, said the miscalculation was not due to online system. “The reporting of the issue reveals a lack of understanding of the processes and the system and it is essential to clarify the situation so that such misunderstanding does not arise in any other LTU/RTO,” the FBR said in the notice to large taxpayers units (LTU) and RTOs.