KARACHI: Pakistan Tax Bar Association (PTBA) has expressed reservations on the FBR’s new electronic sales tax system (SRO 69(I)/2025), recommending changes to better accommodate businesses.
In a detailed communication to the FBR chairman, PTBA acknowledged the board’s efforts toward supply chain documentation but highlighted concerns stemming from the previous Point of Sale (POS) scheme’s unsuccessful implementation.
“Past abrupt actions from the FBR team resulted in futile exercises that failed to meet the test of appeal, ultimately damaging the image of affected businesses,” PTBA stated, emphasizing the need for a more measured approach to implementing rules 150X through 150XQ.
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The association outlined several key recommendations for improving the system’s effectiveness. Primary among these is the implementation of uniform procedures across all registered persons to ensure credibility. PTBA also stressed the importance of evidence-based actions against tax filers that can withstand legal scrutiny.
On the technical front, PTBA advocated for simplifying the integration process and reducing cost burdens on taxpayers. The association suggested allowing businesses to integrate through their existing IT consultants, potentially streamlining the transition process while maintaining effectiveness.
A significant recommendation involved the withdrawal of the licensing requirement, which PTBA argued could prevent potential harassment of businesses. Additionally, the association called for eliminating normal Sales Tax audit requirements, citing the redundancy given the real-time data availability through the new system.
The PTBA warned that without incorporating these suggested modifications, the new system risks following the same unsuccessful path as previous initiatives, potentially undermining FBR’s authority and effectiveness in tax collection.
The association emphasized the critical balance needed between documentation requirements and business-friendly practices, noting that taxpayers already face substantial compliance costs.
PTBA stressed that the initiative’s success heavily depends on building trust between tax authorities and businesses while minimizing opportunities for malpractice and harassment.
Copyright Business Recorder, 2025
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