‘Retailers must list sales tax on price tags separately’

Published May 7, 2020
Retailers, especially those deals in selling of fabrics in local markets , are charging sales tax at the rate of 17pc without mentioning the same on the price tag. — AFP/File
Retailers, especially those deals in selling of fabrics in local markets , are charging sales tax at the rate of 17pc without mentioning the same on the price tag. — AFP/File

ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday made it binding on all registered retailers to show price and tax separately on the price tags and menu cards to ensure depositing of deducted tax in government kitty.

The decision came at a time when retailers — especially those deals in selling of fabrics in local markets — have started charging sales tax at the rate of 17 per cent on retail price from consumers without mentioning the same on the price tag.

Since July 1, 2019, the government has revived standard rate of 17pc sales tax on domestic sales of textile, clothing, leather garments, and other leather goods. However, no sales tax is charged on exports of all these products.

Now to ensure that the sales tax collected from consumers reaches government kitty, the FBR has made it mandatory for all retailers to show prices and amount of tax separately on the price tags attached with finished fabric and locally manufactured articles of textile and textile made-ups.

The FBR introduced a new Rule 150ZEA in the Sales Tax Rules through a notification SRO353 to implement the decision.

Retailers of leather and artificial leather will also be required to show prices and amount of tax separately on the price tags attached with it.

Through another amendment in Rule 150ZB, FBR also made it mandatory for all the restaurants, bakeries, caterers and sweetmeat shops supplying prepared food, foodstuff and sweetmeats to show prices and amount of tax separately on menu cards or menu board displayed in their outlets for the end consumers.

The decision is will help FBR in monitoring and tracing of taxable activities through electronic means.

Under Rule 111 of Sales Tax, an official can order for attachment of property – coins or currency notes. However, FBR through a new rule 111A, has exempted certain properties from attachment and sales.

As per the amendment, the necessary wearing apparel, cooking vessels, beds and bedding of the defaulter, his wife and children will not be liable to attachment and sale. The provision of attachment will also not apply to such personal ornaments as in accordance with religious usage.

The tax department will not attach tools of artisans, where the defaulter is an agriculturist, his implements of husbandry, cattle and seed grains. However, the commissioner will see and assess it as to enable him to earn his livelihood.

Published in Dawn, May 7th, 2020

Opinion

Editorial

Back to politics
Updated 29 Nov, 2022

Back to politics

PDM and PTI must realise that neither will get what they want if they keep fighting bitterly at every turn.
Election delay
29 Nov, 2022

Election delay

OF recent, leaders from the ruling PML-N have been dropping hints about a possible delay in general elections after...
Sugar woes
29 Nov, 2022

Sugar woes

IT’S that time of year again when cane growers get anxious over the delay in the commencement of the new sugar...
1971 in retrospect
Updated 28 Nov, 2022

1971 in retrospect

The point of no return came when the military launched Operation Searchlight in March 1971.
Gender-based violence
28 Nov, 2022

Gender-based violence

IT is a war without boundaries and seemingly without end. A UN report on femicide released on Nov 25, the...
Battle against dacoits
28 Nov, 2022

Battle against dacoits

THE Punjab police is clearly fighting a formidable, and so far losing, battle against the criminal gangs based in ...