FBR’s Unjust Revenue Tactics: Harassing 30,000+ Genuine Taxpayers

Reportedly, there are around 200,000 sales tax registered persons, out of which around 50,000 registered persons pay sales tax liability on monthly basis and rest of the registered persons file NIL return. This data is not reconcilable with 4million+ Industrial and commercial utility connections in Pakistan.

Despite very low base of registered sales tax persons, FBR is not shying away to create hurdles for these taxpayers and, vide SRO 350(I)/2024 dated March 7, 2024 has created many hurdles for these taxpayers who are already contributing taxes. As per the SRO, return filed by a taxpayer for a period is treated as provisional return unless the respective seller files his return for the same period upto last day of the month. Incase of failure of the supplier to file return, such provisional return is automatically finalized and the respective input tax entries on account of purchase issued by such supplier in default are automatically deleted.

In a letter [attached] addressed to Member IR Operations, tax consultant of SSGC has highlighted that various vendors of SSGC has not submitted their sales tax return, therefore, in order to timely file its sales tax return, SSGC intends to delete those entries and claim other entries of input tax in order to file its return and enable other industries to claim input tax charged by SSGC. However, ironically, all annexures of Sales Tax return have been locked and SSGC is not able to delink those invoices and either claim other invoices or make payment to enable other industries to claim input sales tax charged by SSGC.

In the letter, it has been highlighted that around 30,000 customers of SSGC are suffering and facing hardship due to this issue.

Despite written request and verbal follow ups, FBR IT team has not resolved this genuine issue which is causing a major issue for entire supply chain of 30,000 plus customers out of around 50,000 sales tax payers.