AGL 40.12 Decreased By ▼ -0.04 (-0.1%)
AIRLINK 131.00 Decreased By ▼ -0.73 (-0.55%)
BOP 6.71 Increased By ▲ 0.02 (0.3%)
CNERGY 4.56 Increased By ▲ 0.09 (2.01%)
DCL 8.97 Increased By ▲ 0.15 (1.7%)
DFML 41.15 Increased By ▲ 0.54 (1.33%)
DGKC 84.90 Increased By ▲ 0.82 (0.98%)
FCCL 32.76 Increased By ▲ 0.42 (1.3%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.57 Increased By ▲ 0.22 (1.94%)
HUBC 110.50 Decreased By ▼ -1.26 (-1.13%)
HUMNL 14.31 No Change ▼ 0.00 (0%)
KEL 5.25 Increased By ▲ 0.03 (0.57%)
KOSM 8.80 Decreased By ▼ -0.18 (-2%)
MLCF 39.35 Decreased By ▼ -0.08 (-0.2%)
NBP 60.89 Increased By ▲ 0.60 (1%)
OGDC 196.25 Increased By ▲ 1.31 (0.67%)
PAEL 27.00 Increased By ▲ 0.31 (1.16%)
PIBTL 7.56 Increased By ▲ 0.08 (1.07%)
PPL 156.55 Increased By ▲ 0.78 (0.5%)
PRL 27.05 Increased By ▲ 0.37 (1.39%)
PTC 18.11 Decreased By ▼ -0.19 (-1.04%)
SEARL 82.40 Decreased By ▼ -0.62 (-0.75%)
TELE 8.39 Increased By ▲ 0.16 (1.94%)
TOMCL 34.70 Increased By ▲ 0.15 (0.43%)
TPLP 9.17 Increased By ▲ 0.36 (4.09%)
TREET 17.36 Increased By ▲ 0.66 (3.95%)
TRG 62.20 Decreased By ▼ -0.25 (-0.4%)
UNITY 27.67 Increased By ▲ 0.23 (0.84%)
WTL 1.36 Increased By ▲ 0.08 (6.25%)
BR100 10,406 Increased By 219.4 (2.15%)
BR30 31,576 Increased By 239.7 (0.77%)
KSE100 97,195 Increased By 1648.9 (1.73%)
KSE30 30,162 Increased By 584.1 (1.97%)

KARACHI: The Federal Board of Revenue’s efforts to broaden the tax base have hit a snag due to a lack of coordination between departments, creating hurdles in the sales tax registration process after recent amendments.

According to a letter sent by the Karachi Tax Bar Association (KTBA) to the FBR chairman, the Inland Revenue Information System (IRIS) has not allowed Local Registration Officers (LROs) to entertain the sales tax registration applications and they are unable to accept or reject the applications due to the said technical limitations.

The issue arose after the FBR introduced SRO 350(I)/2024, which placed restrictions on the sales tax registration process for individuals, firms, and single-member companies under Rule 5 of the Sales Tax Rules. The amendments mandated that registration applications would first need to be approved by the LRO before being processed on IRIS.

Minister underscores need for broadening tax base

While the FBR has taken measures such as blocking mobile SIMs, SRO 350(I)/2024, and introducing the Tajir Dost Scheme to expand the tax net and avoid the misuse of the tax procedures, the lack of coordination between departments is rendering these initiatives ineffective, creating an “ugly situation” for the tax authority. The KTBA’s letter to the FBR chairman highlighted that although LROs can view the submitted applications on IRIS, they lack the necessary options to accept or reject them, leaving the applications pending indefinitely.

The KTBA requested the FBR chairman to direct the PRAL team to make the necessary changes on the IRIS portal, enabling LROs to dispose of sales tax registration applications efficiently.

As the FBR aims to broaden the tax base, addressing the coordination and technical issues hampering the sales tax registration process has become crucial to ensure the smooth implementation of its initiatives.

Copyright Business Recorder, 2024

Comments

Comments are closed.