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Home Breaking News

PTBA raises concerns over FBR’s new e-sales tax system, suggests key reforms

byCT Report
15/02/2025
in Breaking News, Latest News, National
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MULTAN: The Pakistan Tax Bar Association (PTBA) has expressed concerns over the Federal Board of Revenue’s (FBR) new electronic sales tax system, introduced under SRO 69(I)/2025, and recommended modifications to make it more business-friendly. In a communication to the FBR chairman, the association acknowledged efforts to improve supply chain documentation but pointed out issues stemming from the unsuccessful implementation of the previous Point of Sale (POS) scheme.

PTBA highlighted that abrupt enforcement of past tax regulations had led to unsuccessful legal challenges, harming the reputation of affected businesses.

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It stressed the need for a more structured approach to implementing rules 150X through 150XQ to avoid similar failures. The association proposed key reforms, including the adoption of uniform procedures for all registered taxpayers to ensure credibility and fairness.

A major recommendation involved evidence-based enforcement to prevent legal disputes. PTBA also advocated for simplifying the system’s integration process and reducing the financial burden on businesses by allowing them to use their existing IT consultants. The association further urged the withdrawal of the licensing requirement, arguing that it could lead to unnecessary bureaucratic hurdles and potential harassment of businesses.

Additionally, PTBA called for eliminating routine sales tax audits, stating that real-time data from the electronic system makes such audits redundant. It warned that without incorporating these reforms, the new system could face similar challenges as previous initiatives, potentially undermining the FBR’s credibility and effectiveness in tax collection.

The association emphasized the importance of balancing documentation requirements with business-friendly policies, noting that taxpayers already face high compliance costs. It stressed that the success of the new system depends on fostering trust between tax authorities and businesses while minimizing opportunities for harassment and inefficiencies.

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