LAHORE: Federal Board of Revenue (FBR) is urging business community to collect one per cent sales tax imposed by the parliament as businessmen are facing problems in recovering additional tax levied on suppliers or services from June 13.
It is being claimed by some suppliers that there is no provision in FBR’s e-filling system to accept the additional tax.
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An Islamabad-based sales tax registered supplier said, “e-filing system only contains provision for 16pc ST on the deadline for filling returns for June,” adding that after several tries, the additional 1pc sales tax was deposited as extra tax.
The registered suppliers have asked to the government to collect additional sales tax only from those parties that purchased materials or services.
A medical equipment supplier demanded the FBR to ask the purchasers, instead of targeting suppliers, to deposit the additional tax. He said that the suppliers had already received their payments from the purchasers on legal billing based on the 16pc sales tax levied at that time. He believed that it would not be possible for suppliers to recover their money from purchasers.
The Apex Court declared the collection of 1pc additional sales tax illegal when the government raised the sales tax from 16pc to 17pc from June 13, 2013 without approval from parliament. Later, the government got the approval of charging additional tax from the parliament with retrospective effect from June 13.
