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Issues in SRO 98 to be resolved to facilitate business: FBR
Source: The Nation | 14-03-2013

The Federal Board of Revenue (FBR) is cognizant all issues emanating out of SRO 98(I)/2013 dated 14 February 2013 and steps are being taken to address all problematic issues in consultation with Institute of Chartered Accountants of Pakistan (ICAP) so that businesses may not be adversely affected due to new set of sales tax withholding rules”.


This was stated by Khawaja Tanveer Ahmad, Chief Commissioner, Regional Tax Office, Karachi while addressing a jam packed seminar organized by ICAP Southern Region Committee (SRC) here at Karachi.During his address, the top sales tax official of FBR dilated upon reasons why Government failed to introduce a broad based Value Added Tax (VAT) in 2009. He explained that in the past FBR’s enforcement arm was frozen for sometime resulting in suspension of tax audits; as a result most of the field officers forgot techniques for conducting meaningful tax audits.


However, he agreed that collection of sales tax through withholding schemes was negation of self assessment, which should be discouraged.Aimed huge applause, Khawaja Tanveer Ahmad categorically declared that SRO 98 will be amended to cater and suit business operations and no business needs to modify its operations due to the new withholding tax scheme. Upon a question, the Chief Commissioner also clarified that FBR has no objection to allow input tax credits to its taxpayers whose corresponding output tax was being paid in SRB or PRA kitty. 


 

 

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