FBR chairman forms committee to review super tax, sales tax issues

Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial on Friday announced the formation of a committee to examine concerns raised by tax bar associations regarding the recovery of Super Tax and sales tax return filing under SRO 350(I)/2024.

As per reports, the decision was made during a meeting at FBR headquarters with representatives of the Pakistan Tax Bar Association, Lahore Tax Bar Association, Karachi Tax Bar Association, and Rawalpindi-Islamabad Tax Bar Association.

Tax bar members informed the FBR chairman about difficulties faced by taxpayers, particularly relating to Super Tax recovery under Section 4C and issues in filing sales tax returns following the issuance of SRO 350(I)/2024 dated March 7, 2024.

The delegation raised concerns over what it described as unjustified payment demands under Section 4C, non-allowance of carry-forward losses, differing interpretations by field formations, and recovery measures taken without policy clarity. It argued that denial of carry-forward losses contradicts established taxation principles and increases compliance burden.

The tax bar representatives urged the FBR to issue a clear and binding policy notification, ensure uniform implementation nationwide, and suspend recovery proceedings related to disputed Section 4C demands until clarity is provided.

In response, the FBR chairman assured participants that the tax authority is committed to facilitating taxpayers and addressing legitimate concerns. He announced the constitution of a committee comprising relevant officials to review the issues and propose practical solutions for early resolution.

Member (IR Operations), Member (IR Policy), and Member (IR Legal) also attended the meeting and took part in discussions.

The chairman acknowledged the consultative role of the tax bar associations and said their input would be considered in efforts to improve policy implementation and strengthen voluntary compliance.