Sales Tax Registration Delays in Pakistan: Karachi Tax Bar Association Calls for FBR Action

The Karachi Tax Bar Association (KTBA) is raising red flags about technical glitches on the Federal Board of Revenue’s (FBR) portal that are stalling the sales tax registration process. These issues stem from recent changes to the Sales Tax Rules.

New Rules, New Hurdles:

  • Revised Regulations: Amendments to Rule 5 of the Sales Tax Rules, introduced in March 2024, require Local Registration Officer (LRO) approval before processing applications on the Integrated Revenue Information System (IRIS).
  • Intended Benefit: This rule aims to ensure thorough examination of applications by local tax offices.

Technical Glitch Grinds Applications to a Halt:

  • Applications Stuck in Outbox: The KTBA reports that applications submitted through IRIS are getting stuck, unable to be processed by LROs.
  • Missing Functionality: While LROs can see the applications, the system lacks the option to accept or reject them.

KTBA Urges FBR to Intervene:

  • Request for Action: The KTBA is calling on the FBR Chairman to address the technical issues and enable LROs to process applications efficiently.
  • Negative Impact: These delays are causing frustration among taxpayers and hindering businesses that require sales tax registration.

A Call for a Smoother Process:

The KTBA hopes that the FBR’s intervention will resolve these technical problems. A smoother and more efficient sales tax registration process is crucial for businesses to comply with regulations and contribute to the tax system.

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