FPCCI for restoring facility to adjust accumulated carry forward amount


The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Chairman Federal Board of Revenue (FBR) that the tax payers be allowed to adjust their accumulated carry forward amount of input tax In a statement issued here on Monday, FPCCI President Haji Fazal Kadir Khan Sherani of said that after harmonization of sales tax rate in Finance Act 2012, the higher rate regime was eliminated which was generally welcomed. However, it has been observed that persons having accumulated carry forward amount in their sales tax returns pertaining to previous higher sales tax rates regime, were not provided any relief for its adjustment. He added that previously such taxpayers were excluded from the applicability of section 8B of Sales Tax Act vide S.R.O 647(I) 2007 dated June 27, 2007 but after doing away with the higher Sales Tax rates regime in the current budget, carry forward cannot be adjusted since condition of 8B is now applicable on them. Consequently such tax payers would be unnecessarily burdened to pay 10% sales tax despite of their accumulated carry forward amounts, pertaining to higher tax rates (upto 22%) regime, available to them, he informed.