The FBR has made registration with the tax collecting machinery mandatory for brands.
The FBR took this action in preparation for the implementation of a Track and Trace System, which will treat any brands that are not registered as unlawful. The government requires makers of cigarettes to get brand licences for each brand or stock keeping unit (SKU) in the manner defined by the Board.
According to the Finance Bill 2021, manufacturers of specified items shall be obliged to secure brand licences in the manner defined by the Board for each brand or stock keeping unit (SKU).
Telecommunications firms operating under licence from the Pakistan Telecommunication Authority will now be classified as ‘Industrial Undertakings’ under the Finance Bill 2021. All telecom firms will be eligible for the benefits and advantages under the Income Tax Ordinance.
According to a tax expert, under the Finance Bill 2021, the definition of “amalgamation” in Section 2 (1B) of the Ordinance referred to the Companies Ordinance, 1984, but the law governing companies was replaced by the Companies Act, 2017; thus, the expression has been amended to read as “Companies Act, 2017 with regards to amalgamation and also wherever the expression appears.”
A new standard of reference Clause 10A is being added to provide a definition for the term ‘business bank account.’ By changing the tax profile, this bank account will need to be included. Generally, all company transactions should be conducted through this account.