Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
January 15, 2020

FBR warns monetary penalty for violating retail print


January 15, 2020

KARACHI: The Federal Board of Revenue (FBR) on Tuesday warned importers and manufacturers of imposing monetary penalty in case of violating legal requirement of retail price printing.

An official memorandum circulated to all chief collectors and collectors of Pakistan Customs, informed that penal provisions regarding non-compliance of retail printing had been implemented.

Through Tax Laws (Second Amendment) Ordinance, 2019 promulgated earlier this month, amendment related to penalty for non printing of retail price has been introduced to Sales Tax Act, 1990.

According to the amendment, any person, being a manufacturer or importer of an item which is subject to tax on the basis of retail price, who fails to print the retail price in the manner prescribed under the Act, then such person is liable to pay a penalty of Rs10,000 or five percent of the amount of tax involved, whichever is higher.

Further, such goods shall also be liable to confiscation. However, the adjudication authority, after such confiscation, may allow redemption of such goods on payment of fine which shall not be less than 20 percent of the total retail price of such goods.

Through Finance Act, 2019, it was made mandatory that imported consumer items falling under Third Schedule of Sales Tax Act, 1990 would be cleared on the basis of retail print. The condition applied from July 1, 2019. However, importers made representations that the printing of retail price was not possible in short time. The FBR on August 7, 2019 issued Sales Tax General Order (STGO) 103/2019 stating procedure for clearance of consumer items under the new conditions.

In the latest office memorandum, the FBR directed that STGO 103/2019 has already been issued for clearing goods at import stage, and it should be followed.

“The STGO recognises that in some situations, the printing of retail price is not possible and allows clearance of goods on payment of sales tax in the manner as provided therein subject to furnishing of an undertaking that the retail price shall be duly printed.”

Therefore, the provisions of the STGO should be followed by the Customs authorities, the FBR added.

However, the aforesaid undertaking should mention that the importer should print the retail price within 10 days of clearance of the consignment and intimate the commissioner of Inland Revenue concerned for inspection before further supply.

“If inspection is not made within 10 days after intimation the importer / manufacturer will be free to supply in the market.” The FBR said that new penal provision introduced through the ordinance should be invoked if the manufacturer/importer violates the undertaking or was otherwise non-compliant with requirements of retail price taxation.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus