KARACHI: The Sindh government has announced a sales tax relief package for its taxpayers by waiving the entire penalty, cutting default surcharge by up to 95% and giving immunity from arrest and prosecution till June 20 this year, according to a notification issued on Friday.
Sindh Revenue Board Chairman Khalid Mahmood, in a notification, said taxpayers who would deposit “arrears of tax (principal amount) plus 5% of default surcharge … between May 21 and 27, 2018” would be able to fully enjoy the offered tax relief package.
The taxpayers who will miss the first deadline may still enjoy the relief by submitting 10% of default surcharge along with the principal amount of taxes from May 28 to June 3, 2018.
Later, the taxpayers can opt for the package by submitting 15% of default surcharge from June 4-10, 2018. Finally, the taxpayers can take benefit of the package by paying a maximum 20% of default surcharge along with tax arrears from June 11-20, 2018.
“The sales tax relief package will become invalid after June 20, 2018,” Mahmood said, adding the package would also provide substantial benefits and relief to service providers and withholding agents in return for tax compliance under the Sindh Sales Tax on Services Act, 2011.
The benefits will also be available in cases where a person has paid late the principal amount of tax prior to the issuance of this notification, but has not yet paid the penalty and default surcharge provided he pays 10% of penalty (as outstanding on May 21, 2018) and 25% of default surcharge (as outstanding on May 19, 2017) to the Sindh government by June 20, 2018.
In cases, where no tax liability is outstanding, but only the arrears of penalty and default surcharge are due to be paid, the relief package allows remission of 90% of such penalty and 75% of default surcharge, if the balance of penalty and default surcharge is deposited from May 21 to June 20, 2018.
The Sindh Revenue Board has asked all taxpayers, service providers and withholding agents to avail themselves of the benefits of the relief package.
The relief provides an opportunity to the taxpayers who for any reason have not been able to clear their liabilities due to accumulation of penalty and default surcharge over a period of time.
“This may also help reduce litigation where taxpayers have gone to courts of law, seeking relief from the default surcharge and penalty,” it said.