Strongly opposing any amendment to SRO.608(1)12014 regarding retailers sales tax registration, the Federal Board of Revenue (FBR) has proposed that a ''business certificate'' for retailers/shopkeepers be made mandatory at federal or provincial level to collect basic information regarding business outlets.
Sources told Business Recorder here on Monday that the new procedure of the retailers was notified under SRO.608(1)2014 in consultation with the business and trade community during budget preparation exercise for 2014-15. The FBR had not issued two-tier sales tax regime for documentation of the retailers in isolation. The government had issued the procedure after due consultative process with the business community in May-June 2014. Now there is no justification of amending or suspending the SRO.608(1)2014.
As far as FBR''s opinion is concerned, the Board id strongly opposed to any move for amending or suspending the SRO.608(1)2014. The retailers voluntarily declare their income below the taxable limit or threshold to avoid registration and their non-co-operative attitude is creating serious problems in government''s documentation drive. They are required to be registered with the sales tax and income tax department as per SRO.608(1)2014.
Sources were of the view that the federal government or provincial governments should introduce a ''business certificate'' for the new business like shops, retailers and business establishments to collect basic information including credentials of owner, National Tax Number (NTN), nature of business, place of business, size of business premises, actual location of business and in case of any change in the nature of business, a separate ''business certificate'' be submitted to the authority. If the proposed ''business certificate'' are issued by the provincial governments, the same can be communicated to the FBR through online facility.
So far, the FBR had registered around 300 retailers during first quarter (July-September) 2014-15 under the new scheme announced in last budget against 11,000 identified retailers required to be registered with sales tax department. The FBR''s statement shows that around 300 retailers have been registered so far. Whereas, there are more than 11,000 retailers who still need to be registered with sales tax which reflects very poor progress of the RTOs despite repeated directions and passage of three months, sources added.