FPCCI calls for revocation of Section 8B of Sales Tax Act. Section 8B of the Sales Tax Act restricts the adjustment of input tax to 90% of the output tax for a given tax period. Originally intended to prevent registered entities from declaring minimal value-addition and claiming excessive tax adjustments, this restriction has, according to the FPCCI, created severe cash flow challenges. The constraint forces businesses to manage increased financial burdens, ultimately escalating the prices of end products for consumers.
In its detailed submission, the FPCCI highlighted several inconsistencies between the legal provisions and the practical implementation of the law through the Federal Board of Revenue’s (FBR) online tax return system, IRIS.
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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