Federal and provincial tax authorities have agreed to finalize tax reconciliation for fiscal years 2012, 2015 and 2016 before next tribunal hearing to be held on June 11, 2019. According to details, FBR team headed by member IR (operations) had discussed the issue related to tax reconciliation for financial years 2012, 2015 and 2016 with provincial secretaries of finance and excise on April 15, 2019.
Later, both federal and provincial tax authorities have shown consentience to reconcile the tax amount deducted by Sindh Excise and Taxation department during tax years 2012, 2015 and 2016 during Tribunal hearing held on April 16, 2019.
Sources in FBR confirmed that Sindh Excise and Taxation department had now provided tax details of income tax deduced on Motor Vehicle Tax (MVT) and on the registration of new and used vehicles during the aforesaid period and hoped that both authorities would reconcile it before next hearing.
Needless to mention, the conflict raised when the FBR had created tax demand of around Rs 5.02 billion for financial year 2016 on the basis of media report and deducted the same from the account of provincial consolidated fund. Now, the Tribunal has directed the Sindh government during last hearing to provide complete records to the FBR and make final reconciliation before next hearing to be held on June 11, 2019.