ISLAMABAD: In a drive against “unregistered persons” who are liable to be registered and are required to pay due sales tax on their taxable supplies under the Sales Tax Act 1990, the Federal Board of Revenue’s (FBR) Directorate of Intelligence and Investigation-Inland Revenue, Lahore, has conducted proceedings under Section 38 and 40 of the sales tax act against three unregistered units manufacturing plastic footwear.

The units were engaged in manufacturing and making taxable supplies of plastic footwear involving huge consumption of electricity but were not paying sales tax and had also not obtained sales tax registration, a press said on Friday .

During the search, relevant record was impounded for further investigation in this regard, it said, adding that such operations will continue to plug sales tax leakage.

The raids come at a time when traders bodies have been protesting the grant of arrest powers to the officers of the Inland Revenue. The finance minister, Shaukat Tarin, has said that the arrest powers will be the prerogative of a high-level committee comprising the FBR chairperson and Tarin himself.

However, traders are not happy. They want these power gone to stop “the harassment of the business community” at the hands of the FBR.


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