LTBA draws attention of FBR towards illegal restriction on importers

Lahore Tax Bar Association (LTBA) draws the attention of the Federal Board of Revenue (FBR) towards what it said illegal and unlawful restriction on commercial importers regarding claim of input tax adjustment under/section 8B of the Sales Tax Act. It is alleged that PRAL is receiving 10 percent of the input tax adjustment from commercial importers under the said Act.
LTBA President Zahid Attiq Chaudhry in a letter to the FBR Chairman Ali Arshad Hakeem written recently has claimed that taxpayers and practitioners are facing serious problems due to said illegal and unlawful restriction imposed by the Pakistan Revenue Automation Limited (PRAL) at serial No 24 of monthly sales tax return regarding claim of input tax up to 90 percent. He said it is contrary to the provisions of SRO 647(1) 2007 dated 27-06-2007, which evidently allow commercial importers to claim 100 percent input tax, he added.