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LAHORE: The Federal Board of Revenue (FBR) has decided that commercial exports (SB type) of DPP-related commodities being exported from all seaports of Karachi will be switched from WeBOC to PSW system in phases.

Initially, it said, the export consignments of rice bearing HS codes 1006.1010, 1006.1090, 1006.2000, 1006.3010, 1006.3090 and 1006.4000 will be completely shifted over to PSW and clearance will be subject to electronic issuance of phytosanitary certificate by DPP through filing Single Declaration (SD) with effect from 12th April 2022.

Accordingly, it is requested that all members engaged in export of rice may be informed to file Single Declaration (Exports) through PSW system for issuance of electronic Phytosanitary Certificate from DPP and Customs clearance of their export consignments with effect from 12th April 2022.

Meanwhile, the Board has decided that sales of goods by importers, wholesalers, dealers and distributors under HS Code as declared in Annex-C of the sales tax return shall be allowed on the basis of goods under the said HS Code as declared in Annex-A and Annex-B of sales tax return by these taxpayers to ensure certainty, and transparency across the board.

It may be noted that the Sales Tax Act, 1990, mandates a taxpayer registered with Federal Board of Revenue (FBR) to correctly declaration of purchases and supplies in the monthly sales tax return as filed under section 26 of the Sales Tax Act, 1990. This essentially being a self-assessment based system warrants high standards of responsibility and integrity on part of the GST filers.

However, the analysis of the data available in the system has led to conclude that the facilities/benefits provided through automated sales tax return are being misused by the importers, wholesalers, distributors who are engaged in business of buying and selling of same state of goods but are fraudulently declaring sales of goods irrespective of their business purchases in violation of provisions of law.

Copyright Business Recorder, 2022

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