Minimum tax on turnover under Section 113
Minimum tax on turnover under Section 113: Prior to Finance Act, 2019 the rates of minimum tax on turnover under section 113 specified in Division IX of Part I of the First Schedule were 0.5%, 0.2%, 0.25% and 1.25% respectively for persons at S. Nos. 1, 2, 3 and 4 of the Table in the said Division.
Through Finance Act, 2019 the rates of minimum tax have been respectively increased to 0.75%, 0.25%, 0.3% and 1.5% for those persons respectively and the amended Table of the said Division shall be as follows:
| Sr. # | Persons | Minimum Tax as percentage of person’s turnover for the year |
| 1 | (a) Oil marketing companies, Oil refineries, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited (for the cases where annual turnover exceeds rupees one billion.)(b) Pakistani Airlines; and(c) Poultry industry including poultry breeding, 0.75% broiler production, egg production and poultry feed production.(d) Dealers or distributors of fertilizer 4[; and](e) person running an online marketplace as defined in clause (386) of section 2 |
0.75% |
| 2 | (a) Distributors of pharmaceutical products, fast moving consumer goods and cigarettes;
(b) Petroleum agents and distributors who are 0.25% registered under the Sales Tax Act, 1990; (c) Rice mills and dealers; and (d) Flour mills. |
0.25% |
| 3 | Motorcycle dealers registered under the Sales Tax Act, 1990 | 0.3% |
| 4 | In all other cases | 1.5% |
These explanations have been issued by FBR after the Finance Act 2019 approved / passed from the parliament of Pakistan.
