Press Release


PRESS RELEASE March 26, 2018

FPCCI laments arrest of S.T Registered Person without Notice
The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Federal Board of Revenue (FBR) to do away with the discretionary powers of the tax officials to arrest a registered person for recovery of short paid amount without serving him a show-cause-Notice and providing him an opportunity to explain his case.

The proposal, inter-alia, is included in the FPCCI Pre-Budget Proposals being prepared under the Chairmanship of Syed Mazhar Ali Nasir, Sr. Vice President, FPCCI.

It elaborated that the payment of tax lesser than the tax indicated in the Sales Tax Return is recoverable from a registered person without giving him a Show Cause Notice in terms of section 11-A of Sales Tax Act, 1990, however, interestingly, in the existing electronic sales tax filing system there is no provision for short payment, thus rendering the powers superfluous and unnecessary. Moreover, “There are judgment of the Higher Courts also against this provision of law as it is in direct contradiction of Article 10-A of the Constitution of Pakistan, it argued.

The FPCCI therefore, reiterated that prior to issuance of Show Cause Notice, no action may be taken by the Inland Revenue Officials against the registered person

Secretary General