LAHORE: After years of struggling with errors in tax assessments, Pakistani taxpayers are embracing a simplified rectification process under Section 57 of the Sales Tax Act, 1990. This change has brought significant relief to businesses, saving them from lengthy disputes and financial losses, said sources from the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR).
They said the rectification process allows taxpayers to correct errors within a 5-year time limit, including those beyond arithmetical or clerical mistakes. Authorities, including the Officer of Inland Revenue, Commissioner, Commissioner (Appeals), or Appellate Tribunal, can initiate rectification.
Pakistan’s tax system reforms continue, with this development paving the way for a more business-friendly environment. This welcome change demonstrates the government’s commitment to facilitating taxpayers and promoting economic growth.
With the simplified rectification process, taxpayers can focus on growing their businesses rather than navigating complex tax disputes. As Pakistan strives for economic growth, this development is a crucial step toward creating a more efficient and transparent tax system.
Taxpayers are optimistic about the future, thanks to this simplified process. As one Anjum Ali puts it, “We can now concentrate on expanding our business, knowing that errors can be rectified efficiently,” he said, adding that the rectification process under Section 57 has brought hope to Pakistani taxpayers, promising a brighter future for businesses and the economy.
When contacted tax practitioners, they welcomed the development, saying, “This change is a game-changer. Previously, even minor errors would lead to prolonged disputes, affecting our business cash flow.” The rectification process, expanded in 2013, allows taxpayers to correct mistakes “apparent from the record” reducing disputes and saving businesses from unnecessary financial burdens.
One small businessman recalled facing a Rs500,000 penalty due to a clerical error. “If this process existed then, I wouldn’t have lost sleep over it,” he said. Industry experts hail this development as a significant step forward, promoting transparency and trust between taxpayers and authorities.
According to tax consultant Jawad Ahmed, “This simplified process reduces disputes and litigation, resolves errors faster, increases transparency, and protects taxpayers’ substantive rights.” For taxpayers like Ali and Khan, this change means less stress and anxiety, less time and resources, and improved financial stability.
Copyright Business Recorder, 2024
Comments
Comments are closed.