In a much welcome move, the Federal Tax Authority has announced revisions/reductions in Administrative Penalties applied for VAT non-compliance via Cabinet Decision No. 49/2021. Multiple reductions have been made to the penalties such as reduction in penalty for late payment of VAT from 1% per day to 4% a month. This was a much needed and awaited move from the part of the Authority to provide relief to taxable persons during these testing times. The English version of the Decision is yet to be updated in the FTA portal which will reveal the full details of measures adopted.