A key documentation measure of the untapped sectors has been delayed due to non-fulfilment of legal formalities for launching the Sales Tax Lucky Draw Scheme (STLDS), 2011. As the Law and Justice Division has yet not vetted the statutory regulatory order (SRO) of the Sales Tax Lucky Draw Scheme (STLDS) 2011, the Federal Board of Revenue (FBR) has delayed its launch meant for documentation of potential sectors.
Sources told Business Recorder here on Thursday that the FBR has finalised all arrangements for launching of the STLDS-2011 from January 1, 2011 under the national drive for the documentation of the economy. The computerisation, software development and awareness campaign is ready for launching the new scheme. However, the FBR cannot notify the Sales Tax Lucky Draw Rules-2011 till the Law Division vet the SRO covering the legal aspects of the scheme. Now, instead of January 1, 2011, the scheme is expected to be launched by Mid-January or February 2011.
It is one of the key measures for the documentation of economy, which has now been delayed due to bureaucratic hurdlers in completion of legal formalities for launching the scheme. The final date for launching the scheme would be announced after clearance of the SRO from Law Division.
According to the draft of the Sales Tax Lucky Draw Rules-2011, this is the first Consumer Incentive Scheme of its sort to be launched by FBR, FBR endeavours to cover restaurants and similar food outlets, registered under Sales Tax Act 1990, through a lucky draw scheme to encourage voluntary registration of all those who are liable to pay/collect sales tax and ensure that the tax deducted is also deposited into government treasury.
The scheme envisage to promote voluntary registration of restaurants and food outlets, promote documentation through issuance of invoices and to plug revenue leakages and is issued under powers vested in FBR under preamble to FBR Act 2007 and section 4(1) (1) of the said Act.
Under the STLDS-2011, the FBR will monitor the scheme's effectiveness through laid down parameters. The parameters included number of new registrations after launch of scheme; increased tax paid on returns by existing taxpayers; increased tax paid on returns by new taxpayers; number of audits conducted as a result of the scheme; tax levied in audit as a result of the scheme; invoices received during the scheme which were not verified due to outlet being below tax threshold.
The rules said that the scheme aims at achieving the following objectives for the restaurants /food outlets sector: Promoting documentation; help in plugging of revenue leakages; increased voluntary sales tax registration; broaden tax base through invoice based information and create a data bank to deter tax evasion.
This scheme covers invoices issued by restaurants/food outlets all over Pakistan. The rules said that the customers availing food from restaurants/food outlets shall obtain invoices (receipts, cash memos) and inform FBR in the manner prescribed. The customers sending information of invoices along with their CNIC-number under this Scheme shall be called participants in the scheme. The participants shall be subject to lucky draw through computer ballot to determine cash prizes.
The personal information of participants will not be used for tax purpose in their individual cases. However, the information received regarding sales by restaurants/food outlets shall be utilised by FBR for objectives of documentation.