ISLAMABAD: Federal Board of Revenue is considering a new policy and administrative proposals to deal with major risk areas in the sales tax regime, to avoid massive revenue loss to the national economy, sources said.
The corrupt registered persons are using few methods within the sales tax regime for evasion. If FBR is able to detect these dodges, revenue loss through sales tax evasion could be stopped to a large extent.
FBR has identified following risk areas in sales tax: fake input tax adjustment; fake input tax on domestic purchase; suppression of sales; fake exports; non-adjustment of value addition tax; fake sales to avoid 1 per cent further tax; non-adjustment of withholding tax; misdeclaration of section 8B of the Sales Tax Act to avoid restriction of 90 per cent input tax; non-relevance of input goods with output goods; non-compliance of section 73 of the Sales Tax Act for payment through banking instruments and circumventing of taxable purchase to evade payable on purchases from unregistered persons.
