ISLAMABAD: In a policy move affecting registered taxpayers, the Federal Board of Revenue (FBR) has reduced the maximum period for granting condonation of delay in sales tax matters from three years to two years.
Under the revised framework, the Commissioner Inland Revenue (CIR) may now condone delays of up to two years for sales tax–registered taxpayers, instead of the earlier three-year limit. The change has been notified through an official notification issued on Friday.
The notification amends condition (e) of SRO 1444(I)/2024 dated September 12, 2024, by substituting the words “three years” with “two years” in exercise of powers conferred under the proviso to Section 74 of the Sales Tax Act, 1990.
Previously, the FBR had empowered the Commissioner Inland Revenue having jurisdiction to condone time limits specified under the Sales Tax Act or rules framed thereunder, allowing delayed applications or actions to be accepted within a period considered appropriate. This discretionary power will now be restricted to a maximum of two years.
According to the procedure outlined in the notification, the registered person concerned, or an authorised representative, must submit an application to the relevant Commissioner Inland Revenue, clearly stating the reasons for the delay. Where no additional information or documents are required, the commissioner is required to decide the case within 30 days of receipt of the application.
If further information or documentation is deemed necessary, the commissioner may seek the same and must decide the case within 45 days of receipt of the application. In all cases, the Commissioner Inland Revenue is required to decide the matter on merit and record reasons for either approving or rejecting the request for condonation.
