On Saturday, the Sindh High Court suspended the requirement for traders to submit an affidavit when filing their sales tax returns.
Sindh-(Webdesk): This decision was made during a hearing regarding multiple petitions filed by traders through their legal representative, Asad Ashfaq Tola. The court addressed concerns that the Federal Board of Revenue (FBR)’s directive to attach an affidavit to sales tax returns was in violation of the Sales Tax Act of 1990, which does not mandate such a requirement.
Petitioners argued that the affidavit placed an undue burden on them, forcing applicants to verify the actions of their suppliers—an obligation they deemed unnecessary and contrary to existing regulations.
On October 17, the FBR had mandated that sales tax returns for September 2024 be filed along with affidavits, a decision that prompted immediate backlash from the trading community. In response to this outcry, the Sindh High Court ordered the suspension of the affidavit requirement until the next hearing set for November 1.
During the proceedings, the court instructed the relevant commissioners to appear and present their positions on the issue. Additionally, the court recorded the FBR’s declaration, ensuring that sales tax returns for September could be submitted without the need for an affidavit.
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