Federal Board of Revenue (FBR) Thursday made it clear that 15 per cent flood surcharge on every income taxpayer would not be extended beyond June 30, as it was only for the last quarter of the outgoing fiscal year.
“The government has no intention to extend the 15 per cent income tax surcharge beyond June 30 this year, as it was only till June 30”, said an official of FBR. The government in March through Presidential Ordinance took several revenue generation measures steps worth of Rs 53 billion for the last quarter (April-June) of the outgoing financial year 2010-11 in order to reach the revised revenue collection target of Rs 1588 billion and to curtail the fiscal deficit as apart from revenue generation measures, the government also took steps to control its expenditures.
The government imposed 15 per cent flood surcharge on every income taxpayers, increase the Special Excise Duty by to 2.5 per cent from one per cent and also abolished tax exemptions given to five exports oriented sectors.
According to the estimates, the FBR has expected to generate Rs 25 billion through eliminating tax exemptions, some Rs 20 billion through flood surcharge and remaining Rs eight billion through increasing the Special Excise Duty during the last quarter of outgoing financial year.
However, the government in finance bill 2011-12 has eliminated the all kind of Special Excise Duties but the removal of tax exemptions given to several sectors and commodities would remain continue. Similarly, the finance bill 2011-12 has not proposed any continuation of 15 percent income tax surcharge beyond June 30, 2011.
Meanwhile according to the official statement issued by FBR the 15 per cent surcharge on payable income tax for period 15th March 2011 to 30th June 2011 and it started implementing wef 15th March 2011.