ISLAMABAD: The Federal Board of Revenue (FBR) has decided to file an intra-court appeal against the decision of a single bench of the Lahore High Court (LHC) in which the court declared SRO 608 (1)2014 as ultra vires and having been incompetently issued.
Member Inland Revenue Rehmatullah Khan Wazir told Customs Today that the decision could cause revenue shortfall of up to Rs 25 billion and the FBR could not afford it.
It is pertinent to mention here that a special scheme was announced for retailers in federal budget 2014-15 to give effect to the announcement, SRO 608 (1) 2014 was issued to substitute rules 3 to 10 of Sales Tax Special Procedure Rules, 2007.
After LHC decision, the distinction amongst retailers as introduced vide SRO 608 (1) 2014 has been relinquished and all the retailers will now be treated at par.
Now all retailers were required to be registered and returns were to be filed quarterly by 15th day of October, January, April and July. Chairman Federal Board of Revenue Nisar Muhammad Khan Informed the Finance Minister Ishaq Dar and decided to defend the said SRO.
M/s H. Karim Buksh filed this petition in Lahore High Court through Advocate Shahbaz Butt and prayed to declare the provisions of SRO No.608 (1) 2014 as null and void.
Sources said that after necessary procedure Federal Board of Revenue will file intra court appeal in coming week.
