ISLAMABAD, Nov 14: The Central Board of Revenue has curtailed the retrospectivity of its earlier decision of withdrawing the facility of final tax regime from manufacturers. The decision was announced through an income tax notification SRO1130 of 2005 issued here on Monday by amending the second schedule of the Income Tax Ordinance, 2001.
Spokesman for CBR Habib Fakhruddin said in the budget the option with the manufacturers to avail a final tax regime was withdrawn retrospectively from July 1, 2002 (effective date of the Income Tax Ordinance, 2001).
Through the SRO1130, this retrospective withdrawal has now been curtailed to apply from July 1, 2005 to facilitate taxpayers, he added.
The notification reads: “In the aforesaid schedule, in Part IV, after clause (41), the following new clause shall be inserted, namely: (41A) notwithstanding anything contained in the Finance Act, 2005 (VII of 2005), with respect to the omission of clause (40) of Part IV of the Second Schedule to this Ordinance, nothing in sub-section (6A) of Section 153 of this Ordinance shall apply to any person being a manufacturer, where declaration of option for the presumptive tax regime has been furnished and transactions pertaining to such option have been undertaken and completed on or before the 30th June, 2005: Provided that all declaration of options already furnished shall cease to have effect after June 30, 2005.”
