Staff Reporter
Islamabad
The Islamabad Chamber of Commerce and Industry (ICCI) has urged the government to amend Sec-8B of Sales Tax Act 1990 for allowing 100 percent adjustment of input tax against output tax from next budget instead of existing 90 percent.
President ICCI Muhammad Ahmed Waheed on Saturday stressed that during this crisis period caused by Covid-19, government should allow business community to adjust input tax of the 100 percent of output tax. He further said that government should remove discrepancy in adjustment of input and output tax in the next budget by allowing them 100 percent adjustment of input tax.
He said that government had allowed registered persons to adjust input tax paid on goods and services purchased from local market, imported from abroad and goods purchased in auction during a tax period, however, all registered persons have not been allowed to adjust input tax in excess of 90 percent of the output tax for that tax period, which is an act of injustice with them.
Muhammad Ahmed Waheed said that FBR vide its SRO1190(1) of 2019 has allowed 100 per cent adjustment of input tax against output tax to some sectors including persons registered in electrical energy sector, oil marketing companies, petroleum refineries, fertiliser manufacturers, gas distribution companies, telecommunication services as the restriction of adjustment of input tax only up to 90 percent of output tax would not apply to them.
However, he said that due to lockdowns to curb the spread of coronavirus pandemic, businesses of almost all sectors of the economy have incurred huge losses and keeping in view their current financial difficulties, government should allow adjustment of input tax against 100 percent output tax to ease their problems.
