Registered, un-registered persons: textile industry: FBR initiative causes confusion

Textile millers are yet confused over the mantra of registered and un-registered persons, initiated by the Federal Board of Revenue (FBR), despite an agreement between the APTMA and the Chairman FBR. Queries kept on emerging throughout Thursday on clarification regarding the issue, as a section of media had reported that 2 percent sales tax would be applicable on supply of yarn to registered or un-registered persons.
However, sources in the APTMA made clear that 2 percent sales tax on supply to registered buyers would only be refundable and the supplies to the un-registered buyers would not be refundable to the industry. Hopes were high that the FBR would issue the relevant notification on Wednesday; however, no such development took place until the filing of this report. The relevant circles expressed the hope that the FBR would issue it on Friday (today).
It may be noted that the textile industry had come to a grinding halt due to aggressive media trial of the industry on sales to un-registered buyers. The revenue department officials also took action against a few mills, followed by injunction orders from the court of law and ultimately the FBR high-ups agreed to sit with the APTMA leadership and listen to their concerns.
It is also worth noting that the FBR chief had also visited Karachi to interact with textile industry representatives who made hue and cry over the malicious campaign against the industry on behalf of the FBR. The sources have further confided to the Business Recorder that another group of textile associations was yet negotiating the Chairman FBR to pursue him to reduce the sales tax from 2 percent to 1 percent on supplies to un-registered buyers.
According to these circles, the FBR should not harass industry for the wrongdoings committed by others, as the textile mills have made sure that their supplies are directed to buyers on the Active Taxpayer List (ATL) of the FBR. Also, the record of all supplies is maintained by the mills regularly. Further, all proceeds are transacted through banking channel, which means that the industry fulfils legal requirements.