- FBR clarifies rules on excess sales tax collection as per Section 3B of the Sales Tax Act 1990
- Excess tax collected from consumers must be paid to the Federal Government regardless of initial tax liability
- Collected excess tax will be treated as tax arrears and is recoverable under the same act with no refunds allowed
- Tax collectors must prove tax burden was passed to consumers and maintain accurate records
- FBR emphasizes strict compliance with tax laws to prevent excess tax collection
- Enforcement includes audits and penalties for non-compliance to protect consumer rights and ensure tax compliance
- Businesses advised to review tax processes regularly to align with FBR regulations and avoid legal and financial issues
- FBR aims to enhance accountability and protect consumer interests in Pakistan’s tax system
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.