Tax Widening: RTO enforces sales tax on restaurants

ISLAMABAD: Regional Tax Office (RTO), Rawalpindi and Islamabad has initiated action u/s 40(B) of the Sales Tax Act in respect of a number of restaurants situated in their jurisdiction, as part of a campaign to realise maximum revenues from sales tax. Needless to mention, that high profile sales tax payers such as these restaurants, charge sales tax from customers but a number of them do not deposit the tax duly collected in the government treasury. By effective monitoring, sales tax revenue has increased considerably over the preceding years, read a statement issued by the FBR today. The tax liability has also been upheld in first appeal by commissioner IR (Appeals-III), Islamabad. The recovery proceedings are under way, the statement concluded.

Published in The Express Tribune, June 18th, 2011.