FBR's Sales Tax SRO No. 1203(I)/2019 dated 10 October, 2019 aims certain changes made to Sales Tax Rules. The SRO, however, makes no reference to the Sales Tax Act, 1990. It does not state the law under which powers to change the rules or to inflict the laws have to be made, raising a question mark on the legal efficacy of the amendments pronounced. An SRO has to be under a pronounced law which it should pronounce in clear terms.
Of late, FBR has gone into the practice of combining amendments, etc., in the Sales Tax & Federal Excise Acts in one SRO. It is in disregard of the fact that to be exercised is power under a distinct law. Combining efficacies under different laws is not permissible under the legislations.
The mix-up of two legislations with varying provision is instrumental in creation of confusion, bars attempts to cross referencing.
As the cited two legislations have no provision for overstepping by a (different) law, going to amend systems operating under two different laws belies authority under the legislations.
Neither the Sales Tax Act nor the Federal Excise Act upholds overstepping. To guard against confusion and more so to keep its own house in order, it would be in the interest of FBR to issue SROs distinctly under the Sales Tax Act or the Federal Excise Act.
It follows from the above, that the SROs referring to both the Federal Excise Act and the Sales Tax Act have no law vires.
Copyright Business Recorder, 2019
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