LAHORE: The Punjab Revenue Authority (PRA) has written a letter to the Federal Finance Ministry, asking it to return the money collected under the head of general sales tax in Punjab.
It is pertinent to mention here that after the passage of 18th amendment to the constitution, the provinces are authorized to collect sales tax instead of the federal government.
Source told Customs Today that FBR continue the collection of general sales tax despite passage of 18th amendment because provinces have no mechanism to collect the same.
The amendment was passed in year 2010 and the Punjab government established Punjab Revenue Authority in 2012 but in Financial Years 2012-13, 2013-14 and 2014-15, the Federal Board of Revenue continued the collection of sales tax from Punjab.
Source said that in year 2014 Federal Board of Revenue and Punjab Revenue Authority (PRA) signed a MoU that FBR will returns the collected sales tax to Punjab that he has collected on the imports and exports.
