ICCI calls for further extension in the last date of ST Returns of March 2020
- April 29, 2020
The Islamabad Chamber of Commerce and Industry has called upon
the Federal Board of Revenue to give further extension in the last date for the
submission of Sales Tax Returns of March 2020 as in the current circumstances when
most of the business and industrial units were closed, it was difficult for business
community to submit ST Returns of March 2020 within due date.
Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce & Industry
said that FBR had extended the last date for the submission of ST Returns of March 2020
till April 30, 2020. However, due to the Covid-19 issue, most of the business and
industrial institutions were still closed. He said that ST returns were directly related with
sale/purchase activities, but at a time, when majority of businesses were closed, how
was it possible for business community to submit ST returns within due. He urged that
FBR should give at least one month’s further extension in the last date for submission of
ST Returns of March 2020. He further emphasized that keeping in view the difficulties of
business sector due to Covid-19, government should defer the submission of ST Returns
for next 6 months that would provide great relief to the business community.
ICCI President said that according to Section-8B of Sales Tax Act 1990, a registered
person shall not be allowed to adjust input tax in excess of ninety per cent of the output
tax for that tax period. However, he stressed that during this crisis period caused by
Covid-19, government should allow business community to adjust input tax of the 100
percent of output tax. He further said that government should remove this discrepancy
in input and output tax and in the next budget, should allow 100 percent adjustment of
input tax against output tax that would be a great facilitation for the business
community.
Muhammad Ahmed Waheed said that government has provided a good incentive to
construction industry by giving it exemption from Sec-111 of ITO as it would promote
investment in the construction sector. He further said that government should remove 3
percent further tax on non-registered customers for purchase of all products as it
tended to increase product cost and was affecting business activities as well. He said
that removal of further tax on non-registered customers would reduce product cost and
give boost to business activities.