Controversial SRO to stay for tax period of March

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue has no intention to suspend SRO.191(I)/2012 for the tax period of March 2012 and phase-wise implementation of the said SRO would be ensured by collecting Computerized National Identity Card numbers or National Tax Numbers of the unregistered buyers, manufacturers, importers and exporters in the sales tax returns to be filed by April 15, 2012.

Sources told Business Recorder on Wednesday that the FBR has dispelled the impression created by some persons from private sector about reported suspension of the SRO.191 for a period of one month. A wrong impression has been created that the said documentation measure has been temporarily suspended. This is not correct as government has not communicated any decision to the FBR to further suspend phase-wise implementation of the SRO.191. The FBR has not issued any clarification or instructions to the field formations regarding suspension of the implementation of the SRO.191.

According to sources, the FBR’s electronic system has incorporated necessary changes to phase-wise implement SRO.191. Under the said SRO, in sales tax return for the month of March 2012 (to be filed up to 15th April, 2012), at least 60% of the sales shall be to identifiable persons whose STRN/NTN/CNIC will be provided in the sales tax return. The registered manufacturers, importers and exporters have to fulfil the phase-wise implementation of the said notification from tax period of March 2012.

It is important to mention here that a consultation meeting between the Ministry of Finance and business community on budget for fiscal year 2012-13 was held on April 5, 2012. A committee was constituted to decide about the future of SRO-191 during this consultation meeting with business community on budget for fiscal year 2012-13. The business community wanted the suspension of the SRO-191 at least till the budget and requested the government to implement the SRO in consultation with business community and subsequently a committee was constituted to devise future roadmap about the documentation of the economy.

When this scribe contacted a senior FBR official on Wednesday, he categorically said the FBR has not taken any decision on the suspension of the SRO in question. The FBR has not received any instructions from any policy maker or Ministry of Finance to suspend SRO.191 (I)/2012 for the tax period of March 2012. It seems that a wrong impression has been created about the suspension of the SRO. The business and trade has accepted the phase-wise implementation of this documentation measure and started submitting CNICs/NTNs of their un-registered buyers. If any decision has been taken to suspend implementation of SRO.191(I)/2012, the FBR had to communicate the same to the Large Taxpayer Units and Regional Tax Offices. So far the status of the SRO.191(I)/2012 has not been changed and the FBR has committed to implement the documentation measure in its true sprit.