BR100 Decreased By (-0.18%)
BR30 Increased By (0.53%)
KSE100 Increased By (0.15%)
KSE30 Decreased By (-0.29%)
AGHA 7.78 Increased By ▲ 0.04 (0.52%)
BECO 5.29 No Change ▼ 0.00 (0%)
BML 61.21 Increased By ▲ 1.20 (2%)
BOP 35.20 Decreased By ▼ -1.26 (-3.46%)
CNERGY 13.13 Increased By ▲ 1.19 (9.97%)
CSIL 6.15 Decreased By ▼ -0.02 (-0.32%)
FCCL 58.35 Increased By ▲ 0.99 (1.73%)
FFL 16.54 Decreased By ▼ -0.04 (-0.24%)
FNEL 1.21 Increased By ▲ 0.01 (0.83%)
KEL 7.39 Increased By ▲ 0.07 (0.96%)
KOSM 6.04 Decreased By ▼ -0.01 (-0.17%)
LOTCHEM 27.15 Increased By ▲ 0.01 (0.04%)
MLCF 102.94 Increased By ▲ 0.87 (0.85%)
NBP 206.25 Decreased By ▼ -0.10 (-0.05%)
NCPL 62.35 Decreased By ▼ -0.27 (-0.43%)
NPL 71.40 Decreased By ▼ -0.58 (-0.81%)
OGDC 320.49 Increased By ▲ 1.30 (0.41%)
PACE 11.36 Decreased By ▼ -0.02 (-0.18%)
PAEL 43.95 Increased By ▲ 0.07 (0.16%)
PIBTL 16.85 Increased By ▲ 0.01 (0.06%)
PPL 222.39 Increased By ▲ 0.84 (0.38%)
PRL 67.09 Increased By ▲ 3.34 (5.24%)
PTC 72.50 Increased By ▲ 0.09 (0.12%)
SSGC 27.27 Decreased By ▼ -0.01 (-0.04%)
TBL 9.90 Increased By ▲ 0.04 (0.41%)
TELE 8.74 Increased By ▲ 0.12 (1.39%)
TPL 21.60 Increased By ▲ 0.92 (4.45%)
TPLP 15.43 Increased By ▲ 0.45 (3%)
TREET 24.15 Increased By ▲ 0.05 (0.21%)
TRG 63.00 Decreased By ▼ -0.29 (-0.46%)

Pakistan Industrial and Traders Associations Front (PIAF) has urged the Federal Board of Revenue (FBR) to withdraw amendment to section 21 of Sales Tax Act 1990, as the amendment is totally against the business norms and ethics.
The PIAF Chairman Sohail Lashari, after having a meeting with a delegation of Foundry Association of Pakistan, pointed out the amendment suggests that any registered person, including vendors of auto parts and manufacturers will not be allowed input tax credit even for genuine invoices against genuine transactions if later on the supplier is black listed for whatever reason or default on his part, which is not practically possible to see in future.
A party working with any other business group or person cannot be adjudged at the time of genuine transactions today that in future it will be black listed by FBR, therefore, how the transactions made today along with Sales Tax paid can be denied input tax credit. This deviation from the settled law through courts is also against the FBR's own stand of logics vide order No 6 of 2003, which reads "it is vividly clear that the proposed amendment by way of insertion of sub Section (3) in Section 21 is illogical, unjust and against the all canons of justice. It is neither practicable nor enforceable, as the system may collapse due to very heavy taxation involved on such black listing of supplier."
The PIAF Chairman said that it is in the larger interests of the economy of the country that all sorts of changes in economy related laws should be made in consultation with concerned stakeholders, as policies made in isolation would not work in present circumstances.

Copyright Business Recorder, 2011

Comments

Comments are closed for this article.