KCCI urges FBR chairman to address sales tax return glitch

Calls for waiver of late-filing penalties attributed to this system error

KARACHI:

Karachi Chamber of Commerce and Industry (KCCI), President, Iftikhar Ahmed Sheikh, has urgently appealed to Federal Board of Revenue (FBR) Chairman Malik Amjad Zubair Tiwana to promptly resolve a technical glitch affecting the filing of sales tax returns. Additionally, Sheikh has sought the waiver of late-filing penalties attributed to this system error.

Sheikh highlighted the challenges faced by sales tax filers in submitting returns on time due to the persistent glitch over the last three months. According to a press statement released on Thursday, the KCCI president stressed the urgency of exempting filers from penalties, especially considering the risk of companies being blacklisted if four consecutive returns are not filed.

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In a letter addressed to the FBR chairman, Sheikh conveyed that the KCCI had received numerous complaints from members struggling to file their sales tax returns. He pointed out the introduced restriction in Sales Tax General Order (SGTO) 13 of 2022, which limits filers to reporting supplies with Harmonised System (HS) codes imported or purchased within the last 12 months.

While expressing support for STGO 13 of 2022, Sheikh noted that despite its flawless operation over the past year, filers encountered difficulties in the last three months. Attempting to input HS codes for lawfully imported items resulted in an error message, stating that the HS code did not exist in their purchases according to STGO 13 of 2022.

Sheikh underscored the need for immediate directives from the FBR chairman to rectify these errors, ensuring a smooth process for filers who have been grappling with challenges for an extended period.

 

Published in The Express Tribune, November 24^th, 2023.

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