ISLAMABAD, May 4: The Central Board of Revenue (CBR) has reduced the rate of retail tax and federal excise duty for cable operators to raise maximum revenue from these sectors.
Under the new scheme for registered retailers, the rate of tax has been reduced from three to two percent.
The decisions were taken through notifications SROs362 and 363 of 2007, released here on Friday.
Through another notification vide SRO 364 of 2007, the rate of excise duty for cable TV operators has been reduced from Rs25 per connection per month to Rs8 per connection per month.
According to details, new rate of two per cent retail tax includes 1.25 per cent sales tax and 0.75 per cent income tax.
Earlier, the rate of sale tax was 2pc and income tax one per cent.
All such retailers, who deposit their outstanding tax liabilities for the period July 1, 2006, to May 30, 2007, by shall be exempted from default surcharge and penalty, added the notification.
The incentives were announced for retailers following failure of the sale tax department to generate maximum revenue from the sector.
Only 30,000 retailers and wholesalers have filed sales tax returns and deposited Rs101 million this year as compared to 34,000 returns received by the CBR with total tax amount of Rs112 million last year.
