Preventing Passing On of Excess Sales Tax to Consumers: Pakistan’s Commitment to Fairness and Accountability

• FBR issued an updated Sales Tax Act, 1990 applicable for tax year 2024
• Section 3B of the Sales Tax Act aims to prevent passing on of excessive taxes to consumers
• Individuals or entities collecting excessive taxes are obligated to remit the surplus amount to the Federal Government
• The Act categorizes the excess amount as an arrear of tax or charge, granting the government authority to recover it promptly
• Those responsible for collecting excessive taxes cannot seek a refund and any such claim will not be entertained by the courts
• The Act empowers the Federal Government to recover the excess amount regardless of any other law or court judgment
• Section 3B(3) places the burden of proof on the person collecting the tax or charge to demonstrate whether it has been passed on to the consumer
• The initiative reflects the government’s commitment to enforcing tax laws, promoting fairness, and safeguarding consumer rights.

Source: pkrevenue.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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