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The Federal Board of Revenue (FBR) has suspended the sales tax registrations of a number of businesses, including taxpayers who say they have regularly filed their sales tax returns.

Affected taxpayers and tax consultants have raised concerns over the move, particularly where businesses have filed returns for the last six tax periods but their registrations have still been suspended.

The businesses say the suspension is preventing them from filing sales tax returns and determining their tax liabilities. This, in turn, is causing delays in sales tax payments.

Taxpayers believe the action may be connected to the FBR’s requirement for businesses to integrate their invoicing systems with its digital invoicing system.

However, they have questioned the legality of suspending registrations without first issuing formal notices if non-integration is the reason for the action.

The affected businesses say the suspension is creating problems beyond tax filing. Their status is being shown as inactive, making it difficult for them to participate in tenders and continue normal business activities.

They also face difficulties with payments from public and private sector clients, while some businesses may face penalties because of delays in tax payments.

Tax consultants and business owners have described the situation as an additional burden on businesses that are otherwise filing their tax returns.

They have urged Finance Minister and FBR Chairman to intervene and direct the immediate restoration of suspended registrations where the only issue is non-integration with the FBR system and no formal notice was served.

They also called for a clear procedure for restoring active status so businesses do not face additional costs and delays because of the suspension.

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