Gohar Ejaz hails Field Marshal for ‘safeguarding business community'
The FBR issued a detailed procedure of investigation before any arrest of businessmen under sales tax general order (STGO) number 2 of 2025 on Wednesday.
Ejaz termed the government's decision of making it mandatory for tax officials to consult at least two representatives of the business community before initiating investigations that could lead to arrests in tax fraud cases as a victory for taxpayers of the country.
'As announced in the meeting on July 21, 2025 with business leaders, Field Marshal Asim Munir has safeguarded the respect and honour of the business community from the draconian powers granted to the FBR in the Finance Act 2025, following a presentation by the leadership of FPCCI — Dr Gohar Ejaz, SM Tanveer, the President of FPCCI, and the presidents of 18 chambers, including Karachi, Lahore, Quetta, Sarhad, Faisalabad, Islamabad, Rawalpindi, Rahim Yar Khan, and Sialkot.'
According to the STGO, the board has directed that the following procedure shall be followed before initiating investigation leading to action under sub-section (8) and (9) of section 37A of the Sales Tax Act, 1990.
(a) Inquiry shall not be initiated unless approval from the Commissioner has been obtained.
(b) After conclusion of inquiry, the Commissioner shall not give approval to initiate investigation unless he has obtained approval from the Member (Inland Revenue Operations) of the Board. Before seeking approval of the Member (Inland Revenue Operations), it is binding upon the Commissioner to make consultation with two representatives of the business community from amongst such representatives as notified by the Board. (c) Board shall notify a list of representatives of business community on FBR's web portal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
9 hours ago
- Business Recorder
Digital invoicing system: Registered taxpayers adopting cautious approach: FBR
ISLAMABAD: The Federal Board of Revenue (FBR) has found that a large number of sales tax registered persons are adopting cautious approach for selection of digital invoicing system for their businesses for integration with the FBR's system. Sources told Business Recorder that the electronic filing of Sales Tax returns facilitated the registered taxpayers in electronically declaring their purchases, sales, imports and exports through Annexures-A, B, C and D of sales tax return form respectively. The e-filing process allowed the registered persons to enter their sales and purchase data manually or by attaching an excel file format prescribed by FBR. Through this initiative of FBR and Pakistan Revenue Automation Limited (PRAL), filing of returns and taking input credit became very convenient. Officials said it is worth mentioning that the process of e-filing in this manner was developing the foundation and building confidence in the taxpayers towards e-readiness for both the registered persons as well as the tax officers. With the help of e-filing system developed by PRAL, the Inland Revenue wing of FBR gained digital empowerment in further facilitating the compliant taxpayers and effective enforcement against the defaulters. As such, under the prevailing practice of e-Filing of Sales Tax returns after close of a tax period (i.,e the reporting month) the registered persons were still facing the issues in claiming the input credit pertaining to those invoices for which their buyers have not yet filed their returns for the respective period. This issues of late reporting, under reporting and non-reporting by registered persons create problems for their buyers in timely claiming the input credit hence most of the time they even do not declare their sales in a timely manner hence such sales remain hidden from FBR, officials added. Now, FBR vide SRO 1413(I)/2025 dated August 1, 2025 has advised all required persons to start issuing the Digital Invoices by integrating their Invoicing System with FBR. As required under the SRO.1413, all the registered persons will start issuing the invoices digitally latest by 1 st December, 2025. Hence, when all the sales invoices will be issued in real time meaning thereby that before issuance of any invoice, the seller will be required to submit invoice data to FBR electronically and get a unique 22-Digits invoice number to be printed on his Digital Invoice along with associated QR-Code and 'Digital Invoicing' logo prescribed by FBR. In this manner, all the purchasers including Federal, Provincial Departments, Autonomous bodies, Private and Public companies and all other registered persons will have to verify the Invoices raised by their suppliers from FBRs system before making payments. Moreover, registered buyers will be able to get their input credits automatically from the FBRs system without any delay. The FBR has so far issued license to three companies to act as Digital Integrators who can charge up to one Million Rupees per year as integration charges from their customers. Moreover, the PRAL has also been declared as Digital Integrator who will provide the integration services free of any cost. Role of these integrators is to provide necessary mechanism and a robust platform to the businesses for integration of their Invoicing System with FBR, whereas each registered person will have to purchase a new or modify its existing invoicing system to be used in this integration process. Registered persons comprising of companies, AOPs and Individuals are currently using various methods of preparing invoices. Some of the well established businesses use standard ERP solutions and some of those have got indigenously developed invoicing system whereas large majority is still using MS Word or purely manual invoicing books. In order to therefore facilitate all the registered persons some companies, like and have already launched cloud based Digital Invoicing Systems Integrate able with FBR system. Almost all of these solutions have provided three modes of Digital Invoicing, ie, Online Entry, Excel Sheet Based, and direct Integration with existing ERP System. Experts are of the view that registered persons should take special care while selecting the Digital Invoicing system for their business; which should be developed by tax knowledgeable IT experts offering a robust and reliable system with prompt and proper support both in technical as well as tax compliance areas, FBR officials added. Copyright Business Recorder, 2025
Business Recorder
9 hours ago
- Business Recorder
Rules updated: Debit/credit card machines and QR Codes must be integrated: FBR
ISLAMABAD: The Federal Board of Revenue (FBR) has directed the sales tax integrated persons to integrate the facility of debit and credit card machines, QR Codes or any other mode of digital transaction available at all the sale points for integration purposes with the FBR. The FBR has issued updated Sales Tax Rules 2006 on integration after incorporating amendments introduced through Finance Act 2025. According to the updated Sales Tax Rules 2006 issued on Saturday, Board may require an integrated person to integrate the facility of debit and credit card machine, QR Code or any other mode of digital transaction available at all the sale points and the sales through aforesaid means shall not be ordinarily refused. The integrated person through Board's online system shall provide information of his outlets, points of sale or electronic invoicing machines as the case may be. No supply shall be made by the integrated person, except through the integrated outlets, point of sale or electronic invoice issuing machines. The revised rules said that the electronic invoicing software or point of sales software shall be capable of generating and sending alert messages to the Board's computerized system in case of any malpractice or error or any inconsistent action noticed in the system and keeping a log thereof. The Board may require an integrated person to integrate the facility of debit and credit card machine, QR Code or any other mode of digital transaction available at all the sale points and the sales through aforesaid means shall not be ordinarily refused. The Board may require an integrated person to record transactions on each point of sales by a CCTV camera and the recording thereof shall be retained for a period of at least one month. Such recordings shall be provided to the Commissioner concerned as and when demanded and for the period of time as specified by the Board through a sales tax general order. In case of supply of exempt items, the electronic invoices shall also be issued through system integrated with the Board's Computerized System under these rules. The cost for integration including the cost of equipment and electronic invoicing software or point of sales software shall be borne by the integrated person. The integrated person shall prominently display on each of the notified outlets, points of sale or electronic invoicing machines a signboard bearing FBR's official logo along with the text 'Integrated with FBR' and also the registration number of each electronic invoicing software or point of sales software verifiable through the Board's verification services. In case of online sale including online market place, the integrated person shall register such website, software and mobile application with the Board's Computerised System to record the auto-electronic invoices as specified by the Board through a Sales Tax General Order. The integrated person shall issue a real-time verifiable electronic sales tax invoice for every taxable supply and service. The invoice so issued shall be retained as record for a period of six years on electronic media. The integrated person who is found to have tampered with the system or made sales in the manner otherwise than as prescribed in this Chapter, or who contravenes any of the provisions of this Chapter, shall be subject to penalty under section 33 and any restriction under any provisions of the Act or the rules made thereunder. The integrated person shall make all electronic invoicing hardware and software including payment counters comprising point of sale at each outlet, available for installation of the systems; be responsible for smooth functioning of all the hardware and software; report to the Board and the concerned Commissioner within twenty-four hours of any operational failure, damage disruptions or tampering of the system; or report any inoperative electronic invoicing hardware and software within twenty-four hours with reasons along with documentary evidence to the Commissioner holding the jurisdiction, the FBR added. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
SRO to be reinstated soon, Jam tells APSGJTA
ISLAMABAD: Minister for Commerce, Jam Kamal Khan, on Friday assured the All Pakistan Small Gems Jewellers & Tools Association (APSGJTA) that SRO 760 will be reinstated soon, expressing satisfaction with the arguments presented by industry representatives and exporters. The Ministry of Commerce also held a Zoom meeting with gold exporters, who urged the minister to prioritise the reinstatement of the SRO. Exporters highlighted that their import and re-export consignments have been delayed, with a 50-kg gold consignment currently stuck at the port. The SRO expired on July 8, 2025. 'Buyers of Pakistani exporters are considering legal action against their local partners for failing to meet commitments,' said Shabir Ahmad Awan, Convener of APSGJTA's Export Standing Committee, while speaking to Business Recorder. Both the Commerce minister and secretary Commerce assured exporters that the suspended SRO would be reinstated as soon as possible. However, exporters remain concerned that the matter could once again stall at the Prime Minister's Office (PMO) — as in the past. Earlier, the additional secretary of Commerce had informed the National Assembly Standing Committee on Commerce that a special committee had cleared the matter. However, the PMO returned the proposal for reconsideration. Speaking to Business Recorder, Jawed Hanif Khan, Chairman of the NA Standing Committee on Commerce, said he has convened a meeting on August 18, 2025, to raise the issue once again. 'Officials from the Commerce Ministry gave their word that the matter has been resolved,' he said. The gold jewellery export sector operates under SRO 760(I)/2013, which offers tax exemptions under Clause 6: 'Import duty and taxes on the import of precious metals and gemstones under this order shall be exempt from normal import tariffs and taxes. Import of other raw materials, tools, machinery, and equipment required for the production and export of items shall also be exempt from normal import tariffs and taxes.' However, contrary to this provision, sales tax exemptions are not available across all schemes related to the import of precious metals and associated items. While Customs Duty, Additional Customs Duty, and Withholding Tax are exempt under relevant laws, the Sales Tax Act only provides exemption for gold imported under the Entrustment Scheme (S No 178, Sixth Schedule). Imports under the Self-Consignment Scheme, and other related items, remain subject to the standard 18 percent sales tax. Copyright Business Recorder, 2025
