In a letter to chairman FBR Dr. Muhammad Ashfaq Ahmed, Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) has shown concerns over show cause notices from FBR received by industry players for disallowance of input tax for sales to unregistered persons despite following the guidelines set by the FBR in its SRO 1337 issued in December 2020.
According to Executive director FMPAC, Brig Sher Shah Malik (Retd.), fertilizer industry appreciates the efforts of FBR towards documentation of economy and ease of doing business. It was through industry’s cooperation and support that over 1000 major fertilizer dealers have registered themselves for GST and almost 100% are having NTN. In the same context, we wish to draw your attention to the following issue, he added.
ED FMPAC further explained that Post promulgation of the Tax Laws (Second Amendment) Ordinance 2019, input GST was disallowed on sales made to unregistered persons exceeding Rs 10 million in a month / Rs 100 million in a financial year, adding significant exposure for the fertilizer industry.