Sale to Unregistered Persons (Tax Case)
Over the years Federal Board of Revenue has been vouching for ways to bring the informal and unregistered sectors into tax net. The measures for this purpose are taken through changes in both direct tax or indirect tax laws. Upkeeping the same objective this year as well, the Federal Budget for 2020-21 has introduced yet another initiative under the Income Tax Ordinance, 2001 whereby sales to unregistered persons will be taxed at gross amount @ 29% without any deductible allowance, expense or expenditure.