The Federal Board of Revenue (FBR) has proposed an automated system for the issuance of exemption certificates to importers of raw materials in a bid to expedite the processing time and remove human interaction.
The FBR has sought proposals from all the stakeholders before rolling out the new system. The board intends to improve the system of issuance of exemption certificates under Section 148 of the Income Tax Ordinance, 2001 especially for the import of raw materials and intermediaries used by industries, reads an FBR statement.
The new system will be based on an automated risk-based mechanism to minimize the processing time for the issuance of exemption certificates and remove unnecessary delays. As per the procedures, public/private companies will provide the information online that will be processed through the system.
The exemption certificate will be issued by the income tax commissioner within seven days for a public limited company and ten days for private. All the other people will be issued the exemptions within 15 days of the filing of application through the automated system.
If the commissioner cannot process the application within the prescribed time, the system will issue the certificate to the taxpayer. However, such certificate issued to all persons, except public and private limited, will be provisional.
No automatic certificate will be issued if the commissioner has already issued an assignment within seven days of the filing of an application. Moreover, the automatically issued exemption certificate can be revoked by the commissioner at any time in case some prescribed conditions have not been fulfilled. The persons will be given an opportunity to clarify their position.
Source: Pro Pakistani