Sales tax short-filers: collectors empowered to impose embargo

The Federal Board of Revenue (FBR) has authorised the collectors of sales tax to impose embargo on short-filers to ensure maximum collection in the remaining period of 2007-08. Sources told Business Recorder on Monday that in this way the collectors would not be required to approach the board for seeking permission to impose embargo on non-filers.
The action has been initiated against short-filers under Sales Tax Act, 1990 for increasing revenue collection manifold. It is worth mentioning that the collectors are empowered to impose embargo on short-filers of sales tax.
In view of FBR''s directive, the collectors would invoke provisions of section 11A of the Sales Tax Act, 1990 against the short-filers and defaulting units. Under embargo, tax officials can seize the business site of the defaulters, block imports and freeze bank accounts of short-filers.
Under section 11A of the Sales Tax Act, 1990, where a registered person pays the amount of tax less than the tax due as indicated in his return, the short paid amount of tax along with default surcharge shall be recovered from him. Sources said that the recovery of sales tax from non-filers would continue as per FBR instructions issued to the field formations.