The Sindh Revenue Board (SRB) has rejected in a statement the Federal Board of Revenue (FBR) claim of loss of federal sales tax of Rs1 trillion on account of domestic transactions in the four service sectors.
As per the letter received sent by SRB to FBR, the FBR collected total sales tax of Rs1.596 trillion during the financial year 2019-20, of which Rs0.876 trillion was sales tax on imports and 0.720 trillion was sales on domestic transactions.
That being the case, the projected claim of loss of federal sales tax of Rs1 trillion on account of domestic transactions on the four specified service sectors including transportation of oil products, restaurants, toll manufacturing and the construction appears to be untrue.
Addressing the chairman FBRin the letter, SRB suggested that if any research study has been carried out justifying the loss of 1 trillion, the same should be sent to SRB. The letter further sstate:
Kindly appreciate that such misleading statements in the press heighten the concerns in the minds of the public, in general, and the economists, in particular who follow the revenue collection and economic trends. It also escalates the issue beyond its real proportions, besides quite needlessly giving the impression of something seriously amiss between the provinces and the FBR, on the harmonization issue, to the detriment of the efforts underway to resolve them,
The SRB has further requested the chairman FBR to issue a clarifying statement showing the true picture without undermining the achievements of the Provincial Revenue Authorities in the administration a
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