'Restrict retailers instead of manufacturers in Pakistan'
Official says retailers should be asked to purchase only from sales tax registered persons
Representational image. PHOTO: REUTERS
ISLAMABAD:
The Friends of Economic and Business Reforms (FEBR) has urged the Federal Board of Revenue (FBR) to restrict retailers to make purchases only from sales tax registered persons instead of binding the manufacturers to sell only to registered suppliers and retailers.
According to a press release issued on Saturday, the condition imposed on retailers to present CNIC prior to purchase of products is adding tensions for registered manufacturers, which is leading to a massive drop in their sales and grinding business activities to a halt.
FEBR President Kashif Anwar, in a letter sent to FBR Chairman Shabbar Zaidi, reiterated the demand that the supplies shown by sales tax registered entities in their tax returns should be automatically shown just like purchases were shown in the annual business income tax returns of income tax registered entities.
“This will complete the supply chain from sales tax registered suppliers to the income tax registered purchasers,” he added. He added the law had made it mandatory for every sales tax registered person to mention sales tax registration number, national tax number or CNIC on sales tax invoice of above Rs50,000 value.
If one failed to provide NTN or CNIC, the proportionate input sales tax would be disallowed to the registered person, he said.
Published in The Express Tribune, December 15th, 2019.
The Friends of Economic and Business Reforms (FEBR) has urged the Federal Board of Revenue (FBR) to restrict retailers to make purchases only from sales tax registered persons instead of binding the manufacturers to sell only to registered suppliers and retailers.
According to a press release issued on Saturday, the condition imposed on retailers to present CNIC prior to purchase of products is adding tensions for registered manufacturers, which is leading to a massive drop in their sales and grinding business activities to a halt.
FEBR President Kashif Anwar, in a letter sent to FBR Chairman Shabbar Zaidi, reiterated the demand that the supplies shown by sales tax registered entities in their tax returns should be automatically shown just like purchases were shown in the annual business income tax returns of income tax registered entities.
“This will complete the supply chain from sales tax registered suppliers to the income tax registered purchasers,” he added. He added the law had made it mandatory for every sales tax registered person to mention sales tax registration number, national tax number or CNIC on sales tax invoice of above Rs50,000 value.
If one failed to provide NTN or CNIC, the proportionate input sales tax would be disallowed to the registered person, he said.
Published in The Express Tribune, December 15th, 2019.