SRB issues list of 1,289 non-filer customs agents

SRB issues list of 1,289 non-filer customs agents

KARACHI: In a bid to reinforce tax compliance and streamline revenue collection, the Sindh Revenue Board (SRB) has taken decisive action against customs clearing agents who have repeatedly failed to fulfill their monthly return filing obligations.

The SRB, with jurisdiction over the collection of sales tax on services provided by customs agents, has identified 1,289 agents who have been non-compliant for several months.

The failure to adhere to monthly return filing requirements is a serious matter, prompting the SRB to exercise its authority and potentially take stringent actions against non-compliant customs clearing agents. These actions may include the suspension and later cancellation of sales tax registration, with far-reaching consequences for the affected agents.

List of Non-Compliant Customs Clearing Agents

The SRB has released a comprehensive list of the identified customs clearing agents who have neglected their monthly return filing obligations. This list serves as a public record, showcasing the agents who are currently in violation of tax regulations.

Powers of the Sindh Revenue Board

The SRB, empowered with the authority to regulate and collect sales tax on services within its jurisdiction, has the ability to take firm action against non-filers. The potential consequences for customs clearing agents who remain non-compliant include:

1. Suspension of Sales Tax Registration: The SRB has the authority to suspend the sales tax registration of non-compliant agents. This suspension can disrupt routine operations as the National Tax Number (NTN) of the affected agents would be blocked, preventing them from conducting further clearances.

2. Cancellation of Sales Tax Registration: In more severe cases, the SRB may proceed to cancel the sales tax registration of agents who persistently fail to comply with monthly return filing requirements. This cancellation not only impacts their provincial operations but also has implications at the federal level.

Federal Board of Revenue (FBR) Coordination

It’s worth noting that the FBR is also involved in the process, as customs agents were initially required to file monthly sales tax returns with both the SRB and the FBR. Following multiple rounds of discussions, the FBR has allowed deregistration for those customs agents exclusively providing services at the provincial level. This development aims to streamline the tax reporting process and ensure that agents are subject to relevant regulations based on their operational scope.

Consequences of Non-Compliance

Non-compliance with tax regulations not only hinders revenue collection efforts but also undermines the integrity of the tax system. The SRB’s actions highlight the importance of timely and accurate monthly return filing by customs clearing agents. Agents found in violation should take immediate corrective measures to avoid potential suspension or cancellation of their sales tax registration, which could significantly impact their ability to conduct business operations.

The public release of the list of non-compliant agents serves as a warning and emphasizes the commitment of tax authorities to enforce compliance and uphold the integrity of the taxation system in Sindh.