ISLAMABAD: A rift between the Federal Board of Revenue (FBR) and retailers pertaining to the sales tax registration under disputed SRO 608 is about to settle, as both sides have agreed to set the tax rate on annual turnover between 2-4 percent by decreasing it from five percent in the next fiscal year.
In this regard, a meeting was held between the FBR and All Pakistan Retailers. The meeting was attended by SA to PM on Revenue Haroon Akhtar, FBR Chairman Nisar Mohammad Khan, Inland Revenue-Policy Member Rehmattullah Wazir, IR-Operations Member Dr Muhammad Irshad, Spokesperon Dr Muhammad Iqbal, Customs Member Nasir Masroor and Legal Member Shaukat and retailers’ representatives. Finance Minister Ishaq Dar will announce the final government policy about the tax rate in upcoming week.
In the meeting, the retailers presented their stance before the officials. Sharing an inside story with Customs Today, owner of a famous retail outlet named Shiekh Hafeez said that both sides showed seriousness for settling the issues.
He said that the FBR has been asked not to put burden of new taxes on the registered taxpayers, adding that non-taxpayers should be brought into the tax net to increase the collection. He informed that the FBR has agreed to reduce the tax on annual turnover but the government decision in this regard will be implemented from next fiscal year as the FBR has no authority to impose any decision through SRO.
The retailers’ community also announced disassociation from the tax evaders and asked the government to grill them if it has evidence against them.
It may mention here that SRO 608 has been a disputed order since its proclamation and numbers of strikes were also held against it.
However, the retailers have approached the SA to PM Haroon Akhtar to settle the matter who arranged the meeting between FBR and retailers that remained satisfactory for retailers.
