The Federal Board of Revenue (FBR) Tuesday abolished 42 sales tax procedures dealing with adjustment of sales tax by steel melters, commercial importers, fiscal relief to tribal areas, payment of sales tax on vehicles, refund claims on local supply of zero-rated sectors and repayment of sales tax to Duty-Free Shops on locally manufactured goods. The FBR has rescinded 42 special procedures notified through Sales Tax General Orders (STGOs) here on Tuesday. The sales tax special procedures have been abolished covering sectors of vehicles, steel, commercial importers, auto-parts and accessories, five export-oriented zero-rated sectors and others.
According to the FBR, the FBR has rescinded the following Sales Tax General Orders, being non-operational, transposed to Sales Tax Act, 1990 or Sales Tax Rules, 2006, with immediate effect: The FBR has rescinded procedures relating to the e-filing of sales tax return at LTU, Karachi; special procedure for collection and payment of ST on vehicles, procedure for payment of ST against advance; issues relating to steel sector; mitigating the hardships of Islamabad-based taxpayers and refund claims relating to local supply made by the five export-oriented zero-rated sectors.
The FBR has also rescinded procedures covering issues relating to commercial importers; procedure for e-filing of ST returns mills operating on self-generation basis; payment of ST by steel melters and re-rolling and transfer of jurisdiction of collectorate of ST & FE. The FBR has also rescinded procedures pertaining to the revision of ST rate, printing of retail price, issues relating to solvent extraction units and fiscal relief to rehabilitate the economic life in erstwhile Fata.
The FBR has also abolished procedure relating to the repayment of Sales Tax to Duty Free Shops on locally manufactured goods; establishment of ''CSTRO ''and filing and processing of expeditious refund by IT system of FBR. The FBR has also rescinded procedures relating to the refund of sales tax by Customs Collectorate; delivery of sales tax registration certificates to registered persons of Gilgit-Baltistan; and input tax adjustment to Pakistani registered persons against their purchases from AJK registered persons.
The FBR has also abolished procedures covering revision of sales tax rates w.e.f. 1st July, 2010; monitoring committee for the steel sector; revision of Sales tax rates w.e.f. 13th June, 2013; printing of retail price; and uniform procedure for action under sub-section (4) of Section 21 of the Act. Levy of 2% extra tax on the supply of auto parts and accessories, tyres and tubes etc; collection of sales tax from retailers in terms of sub-section (9) of section 3 of the Act, read with SRO 608(I)/2014 and clarification regarding persons liable to be registered but not actually registered; procedure for issuance of STGOs for grant/withdrawal and rejection of zero-rating on electricity and gas to RPs falling under SRO 1125(I)/2011; procedure for adjustment of ST by Steel melters under sub-rule-2C of rule-5 8H; procedure for issuance of STGOs for grant / withdrawal and rejection of zero-rating on furnace oil, diesel oils and coal to RPs falling under SRO 1125(I)/2011; processing of application of exemption under Sr. No. Dated 12th July, 2018 and procedure for adjustment of ST by Steel melters under sub-rule-2C of rule-5 8H.