Islamabad: The Federal Board of Revenue (FBR)’s Directorate General of Intelligence and Investigation (I&I) in Karachi has determined that Sindh’s mines and minerals sector may hold a tax potential worth PKR 84 billion, according to news sources.
The government authority uncovered this information during an examination of the records of mines’ license holders. They looked at the sales and income tax amounts paid by these companies on the extraction of gravel, sand, silica, crushed stones, marble and other minerals. As per the estimates, the average rate of these minerals is PKR 6,000 per metric ton.
Additionally, it came to the authority’s notice that the lease holders of mines were predominantly non-filers. The purpose of this scrutiny is to register the mine holders in order to bring them into tax net.
At the moment, Sindh has imposed a royalty of PKR 8 per metric ton on all minerals extracted or moved from the mines. By imposing a tax rate of 17% on sales of over 50 metric tons of minerals, is expected to help the FBR collect over PKR 52 billion in tax revenue.
The directorate has recommended several steps to the FBR for the efficient implementation of sales tax laws that will lead to the registration of the aforementioned mines’ license holders. Moreover, sources within the board also revealed that sales tax collection from the mineral sector in Balochistan, Khyber Pakhtunkhwa and Punjab has been equally negligible.