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Sales tax: ‘Deduction at source unjustified’

Last year, the FBR had withdrawn Rs4 billion from the Sindh government's account

Our Correspondent January 20, 2017

17% is the sales tax imposed on imported leather goods and garments. CREATIVE COMMONS

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that the deduction at source made by the Federal Board of Revenue (FBR) from the sales tax account of provincial government is unjustified.

Last year, the FBR had withdrawn Rs4 billion from the Sindh government's account against presumed sales tax payment, he said while talking to Federal Finance Minister Ishaq Dar in a meeting at the Chief Minister's House on Friday.

"These figures must be reconciled before putting a hand in the account of Sindh government," he said, adding this year again the FBR deducted Rs4 million from the Sindh government's account. Elaborating, Shah said the FBR asked the State Bank of Pakistan to deduct the amount and the central bank withdrew it from the Sindh government's account No 1 without taking the provincial government into confidence.

Published in The Express Tribune, January 21^st, 2017.

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