FBR to Crackdown on Misdeclaration by Importers and Wholesalers
The Federal Board of Revenue (FBR) has dugout a tax evasion scam and revealed that some importers, wholesalers, dealers, and distributors are misusing the facility of self-assessment scheme while misdeclaring the details of their purchase and supply in sales tax returns.
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According to the FBR, the analysis of the data available in the system has revealed that the facilities/benefits provided through automated sales tax returns are being misused by the importers, wholesalers and distributors who are engaged in the business of buying and selling of the same state of goods but are fraudulently declaring sales of goods irrespective of their business purchases in violation of the Law.
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This essentially being a self-assessment-based system warrants high standards of responsibility and integrity on part of the GST filers.
To ensure transparency it has been decided that sales of goods by importers wholesalers, dealers, and distributors under the HS Code as declared in the sales tax return shall be allowed on the basis of goods under the said HS Code as declared in Annex-A and Annex-B of the sales tax return by these taxpayers from April 1, 2022.
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According to the FBR٫ the Sales Tax Act, 1990 mandates a taxpayer registered with the Federal Board of Revenue (FBR) to correctly declare purchases and supplies in the monthly sales tax return as filed under section 26 of the Sales Tax Act, 1990.
