ISLAMABAD: The Federal Board of Revenue (FBR) issued total 656 Statutory Regulatory Orders (SROs) in last five years in different categories to further facilitate different import sectors.
Statutory regulatory orders (SROs) are one of the characteristically unique features of Pakistan’s economy. They are tools through which the executive the Federal Board of Revenue (FBR), decides the fate of taxation affairs in the country.
“Majority of SROs were issued in income tax, sales tax, federal excise and customs sectors” a well placed source at FBR told Customs Today.
The source said that FBR issued total 143 SROs in income tax, 158 SROs in sales tax, 28 SROs in federal excise duty and 127 SROs relating to customs in last five financial years including 2011-12 to 2015-16.
To question about legal authority of FBR as well as legal status of issued SROs the official source said that the article 77 of the constitution provided option as well as authorized FBR that taxes could be levied by or under the authority of the Act of the Parliament.
“Yet, it has also been a common practice of the issuing authority to issue SROs without prior approval of the parliament and normally approval of the issued SROs is obtained from the parliament afterwards” the source maintained.
The source said that the Customs Act, 1969 contains provisions enacted by the Parliament wherein the legislature had given specific powers to the federal government/FBR to bring certain changes in the regulatory, procedural and revenue environment within limits prescribed by law.
“The Statutory Regulatory Orders (SROs) are form of subordinate legislation and are issued under relevant provisions of the respective statutes to fulfill different policy and operational requirements” the source added saying that consequently, all the SROs had been issued under relevant provisions of the statute duly passed by the Parliament.
Therefore, the source said that all the SROs were issued without the approval of the Parliament but under the delegated authority by the Parliament.
