KARACHI (August 10 2003) : The Central Board of Revenue (CBR), on the demand of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has suspended the operation of Section 73 of Sales Tax Act 1990 and deferred the operation of clause (b) of SRO 507(I)/2003 dated June 7, 2003 till August 31, 2003.
President FPCCI Riaz Ahmed Tata has welcomed the decisions taken by the CBR and thanked Finance Minister Shaukat Aziz for accepting the demand of the Apex Body of Trade & Industry and hoped that in times to come the decisions will have a positive impact on conducting business in Pakistan.
The Sales Tax Wing of CBR vide C.No 3(36)STP/99-Pt-I of August 9, 2003 has suspended the application of the Provision Section 73 of Sales Tax Act 1990 substituted in the Finance Bill 2003, till 31st August, 2003.
During this period the provisions of Section 73 as existed prior to substitution shall remain operative.
The text of the Circular letter issued by the CBR is as follows:
“APPLICATION OF PROVISIONS OF SECTION 73 OF SALES TAX ACT, 1990
I am directed to refer to the above cited subject and to state that due to the operational difficulties pointed out by trade & industry, the Federal Government has decided to hold in abeyance the provisions of Section 73 of the Sales Tax Act, 1990 as substituted vide Finance Act, 2003 till 31st August, 2003. During this period the provisions of the aforesaid section, as existed prior to the substitution shall remain operative.”
2. The CBR vide Circular Letter C.No 1/12-STB/2003 dated August 9, 2003 has notified that the operation of Clause (b) of SRO 507(I)/2003 dated June 7, 2003 has been deferred till 31st August, 2003 and the decision in respect of the SRO shall be taken by Anomalies Committee on the scope of the SRO in the light of the views given by FPCCI.
The Text of the Circular letter is given below:
“SRO 507(I)/2003 DATED 07TH JUNE 2003
I am directed to refer to the above-cited subject and to say that, in order to mitigate the difficulties being faced by the industry, the Federal Government has directed that clause (b) of subject notification shall be deemed to be effective from 01.09.2003.
In the meantime necessary decisions will be taken by the anomalies committee on the scope of the SRO in light of views given by M/s FPCCI.”
The First Meeting of the Anomalies Committee constituted by the Government to examine the anomalies arisen due to change in tariff and amendments in the various sections of Sales Tax Act and Income Tax is scheduled to be held under the Chairmanship of Secretary Finance, who is also the Chairman of Anomaly Committee, on 12th August, 2003 at 10:00 A.M. at 2nd Floor of the Committee Room of Ministry of Finance, Q Block, Pak Secretariat, Islamabad. Sheikh Maqbool Ahmed, Vice President FPCCI has been made member of the Anomaly Committee on the demand of FPCCI.