FBR suggested automatic GD filing extension on system failure

FBR suggested automatic GD filing extension on system failure

KARACHI: The Federal Board of Revenue (FBR) has been urged to allow automatic extension for filing Goods Declaration (GDs) where traders unable to file due to system glitches.

Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2022/2023 informed the FBR that due to malfunctioning of the online filing system, Importers are unable to file GDs in time.

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Consequently clearance of cargo is delayed and importers have to bear heavy demurrage and detention charges.

Similarly the filing of sales tax return is also delayed frequently due to software errors or disruption of the system resulting in expiry of deadline.

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Due to these reasons, taxpayers are often penalized for delay in filing the sales tax returns within due date due to malfunction of the portal. Registered persons are held responsible for failure of the system which is not their fault.

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The chamber recommended adequate provisions shall be inserted in Customs Act 1969 and Sales Tax Act 1990, and necessary modification in the software be made which automatically condone any delay in Filing of GDs and filing of Sales Tax returns. System should allow waiver of demurrage and detention charges for the number of days during which system was down.

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It further recommended that delays in filing of Sales Tax Returns which occur due to failure/malfunction in the system should be automatically condoned without recourse to tax authorities and no penalty should be imposed for the delay in filing.

Giving rationale to the proposal, the KCCI said it would alleviate the hardships faced by importers and sales tax registered persons. It will also enhance confidence of tax-payers in the system and encourage compliance. Save the importers and registered persons from unjust charges and cost of doing business.

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