A Brief On Sindh Finance Bill 2020
The government has introduced 30 amendments to the Finance Bill 2020, most of them related to income tax measures.
Of all the recommendations, 16 are related to income tax, 10 to sales tax, and four to federal excise duty (FED). These amendments will come into effect from July 1.
However, the revised rate of excise duty on cement and cigarettes will come into effect on the next day of assent given by President Dr Arif Alvi.
Through the Act, the government has included three institutions in the list of tax exemptions. No one will ask questions about the income of these institutions in the case of government. Through the Act, the government extended this status to the Shaukat Khanum Memorial Trust, Sindh Institute of Urology & Transplantation (SIUT) Trust and Society for the Welfare of SIUT and National Endowment Scholarship for Talent.
The Shaukat Khanum has emerged as the only private institution which will enjoy this status. The SIUT is already being run by the Sindh government. Under the ordinance, all the private institutions can only get a certificate of non-profit organisation status after fulfilling conditions laid down in 100C of Income Tax Ordinance.
Through the Act, a resident company engaged in the hotel business is included in the definition of the industrial undertaking. The loss of hotel business after July 1, will be allowed to carry forward for eight years.
The taxation on the shipping of resident persons under the final tax regime is further extended until 2030. The Act has further relaxed the disallowance limit up to 10 per cent only for the industrial undertaking, from the proposed 20pc. The Act has also deferred application of this disallowance till Sept 30.
The government has withdrawn the proposed amendment of prior approval from the commissioner for revision of the wealth statement. However, the commissioner can render the revision void in case of wrongdoing. The government has done away with a condition of depositing a 10pc tax amount before admission of Appeal by Appellate Tribunal.