Karachi, December 21, 2023 – A significant step towards tax reforms has been taken in Pakistan as a committee has been set up for the implementation of a Single Sales Tax Return through a unified portal.
The Federal Board of Revenue (FBR) issued a notification on Thursday, outlining the constitution and terms of reference for the newly formed committee.
The decision to establish the Single Portal Committee was a result of deliberations during a tax round table meeting held in Islamabad on November 15, 2023. Members from the FBR and the four provincial revenue authorities (PRAs) participated in the meeting, aiming to streamline tax-related processes and enhance efficiency. The committee’s formation follows an earlier notification dated October 20, 2023.
The composition of the committee includes representatives from key stakeholders:
• FBR: Chief (Provincial Taxes), IR-Policy Wing; and Chief (System), IT Wing
• Punjab Revenue Authority: Member (Policy)
• Sindh Revenue Board: Senior Member (Operations-I)
• Khyber Pakhtunkhwa Revenue Authority: Advisor
• Balochistan Revenue Authority: Member (Operations)
The committee’s Terms of Reference (TORs) outline its responsibilities and focus areas:
a. Readiness and Operational Arrangements: The committee will discuss the preparedness and operational arrangements necessary for the launch of a Single Portal for filing sales tax returns, particularly in the telecom sector across all jurisdictions.
b. Consultation and Co-option: The committee has the authority to co-opt or consult resources from FBR, PRAs, PRAL, telecom companies, or other stakeholders, as needed.
c. Decision-Making: Committee members will deliberate and decide on critical issues related to the Single Return filed in multiple jurisdictions, including changes in return forms, checks, or calculations, enforcement of returns, extensions in filing returns, and revision of returns.
d. Recommendations: The committee will make recommendations in areas identified during the tax round table meeting, such as software development for PRAs’ returns, amendments required in laws/rules, and provisions related to data sharing, data access, and system enhancements.
The notification emphasizes that the committee members will be supported by the Pakistan Raises Revenue Program Office, FBR (HQ), Islamabad, which will assist in coordination, communication, and the scheduling of meetings as per the committee’s requirements.
The move towards a Single Sales Tax Return through a unified portal reflects the government’s commitment to modernizing tax processes, reducing administrative burdens, and promoting transparency. As the committee begins its work, stakeholders anticipate positive outcomes that will contribute to a more efficient and business-friendly tax environment in Pakistan.
