The Federal Board of Revenue (FBR) has initiated a significant overhaul in tax filing procedures for the telecom sector, introducing a single sales tax return to be filed through the Single Sales Tax Portal/Return for the January 2024 tax period, due in February 2024.
Issuing directives to telecom companies, the FBR underscored the discontinuation of the old sales tax return for filing returns related to the telecommunications sector in January 2024. This move is aligned with the government’s commitment to simplifying tax procedures, promoting ease of doing business, and reducing compliance burdens.
The newly developed Single Sales Tax Portal/Return, developed in consultation with Provincial Sales Tax Authorities, aims to streamline the tax filing process, enhance user experience, minimize errors, and provide a centralized platform for accessing tax-related information. By allowing sales tax registered persons to file a single return instead of separate ones with FBR and Provincial Sales Tax Authorities, the system aims to save time, effort, and simplify the filing process.
Moreover, the system facilitates the apportionment of input tax adjustments and tax payments across different tax authorities, eliminating the need for reconciliations and payment transfers. This harmonization of tax procedures between Federal and Provincial Government Revenue Authorities is expected to promote national unity and better compliance.
Initially launched for the telecommunications sector, including major players like M/S CMPak Limited, M/S Pakistan Mobile Communications Limited, M/S Pak Telecom Mobile Limited, M/S Telenor Pakistan (Pvt.) Limited, and M/S Pakistan Telecommunication Company, the new system is set to revolutionize tax filing processes in the sector.
To aid registered persons in adapting to the new system, the uploading of sales tax invoices for January 2024 has been enabled, while the old sales tax return will no longer be available for filing returns related to the telecommunications sector in January 2024.
