The Federal Board of Revenue (FBR) has introduced a new “checklist” for processing condonation cases related to time limits for taxpayers under the Sales Tax Act of 1990. This checklist was detailed in a sales tax order issued by the FBR on Wednesday.

To qualify for a condonation of the period, taxpayers must respond to 14 different questions outlined by the FBR. The checklist is part of a new procedure prescribed for handling requests for condonation of time limits under section 74 of the Sales Tax Act, 1990.

According to the sales tax circular, registered taxpayers must apply to the Commissioner of Inland Revenue (IR) with jurisdiction, specifying the reasons for any delay, as per SRO.1444(1)/2024 dated September 12, 2024. If the condonation request involves a period beyond three years, the Commissioner-IR will review the grounds and any additional information required before sending a categorical recommendation to the Board using a specified format.

The Commissioner-IR is required to forward their recommendation to the Board within fifteen working days of receiving the application, provided it is submitted to the relevant Regional Tax Office (RTO), Corporate Tax Office (CTO), Medium Tax Office (MTO), or Large Taxpayer Office (LTO). If further information is requested, the timeline begins from the date the additional information is received.

Upon receiving the recommendations from the Commissioner-IR, the Board will review the request and communicate its decision—either approval or rejection—to both the Commissioner-IR and the applicant.

This new circular supersedes Sales Tax Circular No.01/2024/IR Operations dated March 4, 2024, as stated by the FBR.