Daily Times

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.