FBR has introduced Online Payments of Income Tax and Sales Tax
|Reform Description||FBR Introduced Online Payments of Corporate Income Tax and Sales Tax
Before: Businesses were required to make tax payments manually, involving cumbersome processes. Besides, in the World Bank’s Doing Business Report, the numbers of payments of Corporate Income Tax were recorded 05 and 12 for Sales Tax, as a result Pakistan’s ranking was 173/190.
After: Payments are being made online, which is quite simple and fast process, saving a lot of time and reducing calculation errors.
|Sector||Businesses Across all Sectors|
|Beneficiaries||All Businesses and Individuals.|
|Jurisdiction/Location||All Over Pakistan|
|Date of Implementation||27-03-2018|
|Timeline||Last 03 Years|
|Details||Difficulty||● Payments were being made manually by the businesses, taking much time and hassle. Moreover, manual payments were resulting in more human interactions and thus high risk of indulgence in corruption in payment of taxes.|
|● The reform for online payments of corporate income tax and sales tax was part of Ease of Doing Business (EoDB) Reform Strategy (2019-2021), the strategy was formulated by BoI in consultation with FBR and other relevant agencies.|
|Solution||● Online payments of Corporate Income Tax and Sales Tax. Payments of both Corporate Income Tax and Sales Tax are clubbed together as the World Bank considers online payment as one payment, irrespective of its frequency. Resultantly, Pakistan’s Ease of Doing Business ranking improved from 173 to 161.|
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