Federal Board of Revenue (FBR) should take measures for simplifying the complex electronic sales tax return system which will help in improving the tax revenue, Mr.Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry (ICCI) made these remarks while chairing a meeting of Taxation Sub-Committee at Chamber house.

 

He was of the view that taxpayers were facing serious technical and practical problems in filing of returns, thus, there is an urgent need for necessary modifications and amendments in the electronic sales tax return system to make them easier for the business class.

 

ICCI President said that despite mentioning and highlighting the issue of simplification of tax system at several important forum, but still Chairman and other concerned officials of FBR has not taken any action so that taxpayers could easily file their returns and contribute their share in economic wellbeing of the country.

 

He said that there is no provision/column available for reporting of sales tax paid at import stage by importers on bill of additional duties and challans. He said that system also put limitation on reporting sales during last couple of months and taxpayer could only report sales pertaining to current tax period and paying default surcharge and penalty as they fails to report sales of previous months which is completely unjustified. 

 

Yassar Sakhi Butt said that tax payers would not be able to complete online returns because of several limitations in electronic sale tax return system, therefore no penalty should be imposed on account of non-filing of Sale Tax Return for the said period.  He urged the FBR to make the system user friendly that would help generate more revenue.

 

He said that FBR is trumpeting about expanding its tax net but on the other hand it does not have a proper electronic system to receive the taxes without bothering the taxpayers. ICCI President underlined the need to educate the small and medium taxpayers about the basics of sales tax registration and other procedures of sales tax laws.