Controversial notification, 191(I)/2011: FBR fails to introduce any alternate measure

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has failed to introduce any alternate measure in lieu of the controversial notification, 191(I)/2011, for obtaining basic particulars of unregistered customers.

Arshad Shehzad, Advocate High Court, told Business Recorder here on Friday that it was highly expected that government may introduce some alternative provisions in lieu of 191(I)/2011 in order to amicably settle the controversy over particulars of unregistered and undocumented segment of the trade.

The trade and chambers have come up with the proposal to introduce 1 percent further tax against sales to un-registered person, however it seems that since government is not interested in increasing existing rate of sales tax in the last year  before election the decision on this account was not taken.

"The other proposal which FBR is working to reduce percentage of disallowance of input tax is not likely to be well supported," he added.

The business community was desperately awaiting for any outcome of this issue in the finance bill to end the uncertainty prevailing on this account, however unfortunately no courageous action was taken leaving the legal position in limbo, the tax expert added.

So far, the 191(I)/2011 has been suspended till May 31 2012 and the sales tax returns to be filed upto June 15 does not require to comply with the provisions of the notification. Legally, now 191(I)/2011 is still is vogue and taxpayers are confused about the enforcement of the 191(I)/2011 by the FBR. The 191(I)/2011 has not been rescinded by the FBR in the budget notifications issued here on Friday.