KPRA accused FBR of misleading govt on sales tax collection

PESHAWAR: The Khyber Pakhtunkhwa Revenue Authority (KPRA) on Wednesday accused the Federal Board of Revenue (FBR) of misleading the federal government by presenting fake amount of revenue collection in current fiscal year.

A press release said that in the current fiscal year FBR is bound to pay-back Rs1.9 billion to the KPRA from sales tax on services as Input Adjustment.

It said that the FBR is violating the memorandum of understanding (MoU) signed between bureau and KPRA.

The FBR, it claimed, is highly far-off of its target and it is now trying to mislead the federal government by presenting the fake digits and also included the amount of revenue, which FBR clutched from the provinces and must have to return to them.

The release quoted the sources of revealing that FBR is bound to return the outstanding amount approximately Rs2 billion to KPRA.

In this regard, the authority disclosed it is continuously writing to FBR for its return of 1.9 billion but the Authority up till now didn’t get any positive response from the other side.

It said the FBR is bound to pay the said amount to KPRA as input tax adjustment under Sales tax on Services.

The Authority, in its official communication to FBR, has requested early payment of the amount payable under input tax adjustment as the current financial year is coming to end June 30.

The FBR, on the other hand, has so for shown lukewarm response in the matter which is not only violation of MoU signed to address such issues but also tantamount to denying the lawful rights of the province.

The release said the authority is now ready to find some other alternative legal recourse to get the legal right from the FBR.