The Federal Board of Revenue (FBR) has relaxed certain conditions for sales taxpayers. Through SRO.1130(I)/2024, the FBR has made amendments to the Sales Tax Rules, 2006.

The requirement to file the corresponding sales tax return in order to claim input tax has been relaxed for several categories of supplies.

This includes gas transmission and distribution companies, electricity distribution companies, independent power producers, and certain third schedule items.

For manufacturers, the sales tax liability has been paid to the extent of items as per the return, and none of the distributors, wholesalers, or retailers, other than the manufacturers, have been the ultimate supplier of the items.

Petroleum exploration and production companies have also been excluded from the requirement to file the corresponding sales tax return to claim input tax.

Registered persons as buyers can claim input tax if their suppliers have paid the sales tax liability as re-computed by application of the second proviso to sub-rule (3) of rule 18 after deletion of invoices along with corresponding input tax, within six days.

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These relaxations are aimed at providing relief to businesses and addressing the challenges faced in sales tax return filing. The FBR’s move is expected to simplify the tax compliance process and facilitate taxpayers during this period.