The Federal Board of Revenue has directed Regional Tax Offices (RTOs) to launch compulsory sales tax registration campaign against cable operators. Sources in RTO, Karachi told Business Recorder on Tuesday that the tax department had earlier issued notices to the cable operators for sales tax registration but to no avail.
Sources said Pakistan Electronic Media Regulatory Authority (Pemra) on request of Karachi RTO has sent a list of 233 cable operators working in the metropolis but none has been registered in the sales tax department. "Keeping in view that Federal Excise Duty is chargeable on the business activity of the cable operators, all 233 cases have been identified not to have been born on stock of sales tax," they said.
The sources said the department is about to issue compulsory registration order to compulsorily register and issue STN(s) to all 233 cable operators. To a question, they said the action regarding minimum assessment under section 11 (5) is on the cards, and would be taken after completion of registration process. However, the cable operators have slammed the decision to launch compulsory sales tax registration campaign, saying that: "the cable operators are already paying 5 percent levy on the gross payment of every advertisement to the Pemra". "And now the FBR is tightening the noose around us to collect 16 percent FED, which would definitely create negative impact on whole media industry."
The FBR has empowered the Enforcement Commissioners of RTOs to invoke provisions of the Sales Tax Act for compulsory registration of unregistered units without delay. The caterers, luxurious clubs, cable operators and restaurants having annual turnover of Rs 5 million and above would be compulsorily registered with the sales tax department. At the same time, the FBR has also invoked provisions of section 40-B of the Sales Tax Act to depute sales tax officers within the premises of restaurants to determine their daily sales.
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