The Federal Board of Revenue (FBR) would submit its comments on the proposal of Punjab government to raise maximum limit of professional tax from Rs 100,000 to Rs 500,000, reflecting an increase of Rs 400,000. Sources told Business Recorder here on Friday that the professional tax is administered under the provisions of the 'Punjab Finance Act, 1977' and the 'Punjab Professions and Trade Tax Rules, 1977.' This tax is levied and collected on/from the persons or class of persons engaged in a profession, trade, calling or employment in the province of the Punjab.

A meeting of Inter-Provincial Co-ordination Committee (IPCC) was held whereby it was decided that all the provinces may initiate a summary for the cabinet to consider an increase in the maximum limit of professional tax from Rs 100,000 to Rs 500,000. In compliance with the IPCC decision, the finance department of the government of Punjab has initiated a summary for the cabinet. Standing Committee of the Cabinet on Finance & Development in its meeting held last month approved the said proposal. The Standing Committee of the Cabinet on Finance & Development considered the matter and accorded approval, in principle, for increase in the maximum limit of professional tax from Rs 100,000 to Rs 500,000. A case was accordingly furnished to the Ministry of Finance for placing it before the federal cabinet.

In view of the said situation, the Finance Division has placed the matter before the federal cabinet for an amendment in the Professional Tax Limitation Act 1941 for increase in limit of professional tax from Rs 100,000 to Rs 500,000 in accordance with the decision of IPCC. The FBR will give its input to the Finance Division on the said issue, sources added.

Copyright Business Recorder, 2017