Coal mine owners say will ensure sales tax compliance, digital invoicing

HYDERABAD: During a series of meetings held between Sajjad Akbar Khan, chief commissioner of Inland Revenue, Hyderabad, and Najeeb-ur-Rehman, general secretary of the All Pakistan Mine Owners’ Association, it has been undertaken by the members of the All Pakistan Mine Owners’ Association to ensure compliance with the provisions of the Sales Tax Act, 1990, including payment of sales tax liability on locally produced coal according to the applicable provisions of law and implementation of the Federal Board of Revenue’s digital invoicing requirements.

The chief commissioner of Inland Revenue, Regional Tax Office, Hyderabad, had on September 12, 2026, urged upon the mine owners that the sales tax on locally produced coal was chargeable at Rs700 per metric tons or 18 percent ad valorem, whichever is higher, and that the higher liability is required to be deposited on taxable supplies by the coal mine owners.

The All Pakistan Mine Owners’ Association through their General Secretary, Najeeb-ur-Rehman, vide their letter dated September 16 had ensured and voluntarily agreed to pay sales tax on coal in accordance with Serial No. 47 of the Eighth Schedule to the Sales Tax Act, 1990.

The chief commissioner of Inland Revenue also clarified that the value of supply is to be determined in accordance with the provisions of the Sales Tax Act,1990and short payment of due sales tax chargeable may lead to recovery proceedings, default surcharge and penalties under the relevant provisions of law.

The Mine Owners’ Association has further directed its member companies to complete the installation of hardware and software and their registration and integration with the FBR system for electronic/digital invoicing, so that electronic invoices can be issued regularly.

The chief commissioner during the meetings had informed the Association members that integration with the digital invoicing system is a statutory requirement and that registered persons are required to be electronically integrated with their systems vis-à-vis the Board’s computerized system through PRAL or a licensed integrator.

Copyright Business Recorder, 2026