The Section 153 of the Income Tax Ordinance 2001 would be enforced again from July 1, 2013 requiring every manufacturer, to collect from distributor, dealers and wholesalers, income tax @ 0.5 percent of the sales. The Federal Board of Revenue (FBR) said on Thursday that the Section 153 was temporarily suspended.

Through Finance Act, 2012-13, a new Section 153A was incorporated, which made it mandatory for manufacturers to collect withholding tax from distributors, dealers and wholesalers at the time of sale. The new law is held in abeyance up to June 30, 2013. It will again be applicable from July 1, 2013.

Copyright Business Recorder, 2012