FBR to ensure implementation of uniform law for documentation

The Federal Board of Revenue would ensure implementation of a uniform policy for documentation of un-registered buyers/sellers in all the sectors including powerful/influential lobbies to avoid multi-faceted tax treatment to different industries.
Sources told Business Recorder on Wednesday that the FBR wanted to have uniform rule/law for documentation of all sectors without discriminatory treatment to any specific sector. As far as exemption given to the sugar sector is concerned, it would hopefully be withdrawn to ensure implementation of a unified policy for all sectors. It is the policy of the Board to ensure uniform policy across the board which is necessary for documentation of more sales taxpayers. Any distortion in the documentation policy would hamper the whole exercise of broadening the tax-base.
It is learnt that the FBR and Pakistan Vanaspati Manufactures Association (PVMA) would convene a second meeting on September 30, 2011 to finalise the issue of obtaining computerised national identity card numbers (CNICs) or National Tax Numbers (NTNs) of unregistered persons receiving supplies from ghee and cooking oil manufacturers. The FBR has strongly opposed the proposal of the PVMA for granting such kind of exemption. "No doubt there should be a unified policy and it is expected that the incentive provided to sugar industry will be withdrawn before filing sales tax returns on due date ie, October 15, 2011," sources said.
The Board had exempted sugar sector from providing CNICs and NTNs of unregistered persons receiving supplies from the mills. In this connection, the FBR had suspended the implementation of SRO 821(I)/2011 for sugar mills. This sector-specific instruction of the FBR would facilitate the sugar sector to avoid documentation of unregistered buyers and sellers within the said sector.
Under SRO 821(I)/2011, the FBR had directed that registered manufacturers, importers and exporters, making taxable or dutiable supplies to unregistered persons, shall issue an invoice containing "computerised National Identity Card number or National Tax Number" of such unregistered persons. The FBR has relaxed a major condition pertaining to the documentation of the sugar industry. The CNIC or NTN is mandatory only for purchases and sales made by manufacturers, importers and exporters from or to unregistered persons with effect from September 01, 2011. Through SRO 821(I)/2011, the Board had obtained legal backing to implement documentation measure to obtain the CNIC or NTN of unregistered persons to whom sales tax invoices have been issued by registered manufacturers, importers and exporters. This SRO 821(I)/2011 had notified major amendments in the sales tax law on the pretext of broadening the tax base, which is one of the important measures to increase the number of sales tax registered persons.