Sales tax ordinance: Punjab, not FBR, to collect sales tax

PRA clarified that sales tax belonged to the Government of Punjab which had the right for its receipts.

LAHORE: The Punjab Revenue Authority (PRA) has directed all mobile and telecom companies to deposit the sales tax payable under the Punjab Sales Tax Ordinance, 2000 on the post-paid telecom services to the government, The Express Tribune has learnt. In a letter to the mobile and telecom companies, the PRA chairperson said that the telecom companies will deposit the sales tax payable under the ordinance on the post-paid telecom services of June, 2012 directly to the Punjab government as requested by the PRA with a sound understanding that the Federal Board of Revenue (FBR) will not duplicate the tax demand. The PRA clarified that according to the law, sales tax belonged to the Government of Punjab and it was the government which had the right for its receipts. PRA undertakes all responsibility in this regard and requests the telecos to pay the aforesaid tax directly to the Government of Punjab.

Published in The Express Tribune, August 9^th, 2012.