ISLAMABAD:Ministry of Finance and Revenue Saturday clarified that through Finance Act 2019, Section 76 was inserted in Sales Tax Act 1990 which empowers Federal Board of Revenue (FBR) with the approval of the Minister In-charge to impose levy, fee and service charges on Tier-1 retailers @ Re. 1 per invoice.
The ministry was responding to news items appearing in certain sections of press regarding Common Pool Fund Rules notified by Federal Board of Revenue.
Subsequently, FBR with the approval of the then Federal Finance Minister levied a POS Service Fee of Re. 1 per invoice on Tier-1 retailers, said press statement issued by the ministry.
The purpose of the aforesaid levy was explicit and duly included the welfare of IRS employees, it said adding this was notified vide SROS.R.O.1279(I)/2021 dated 30th Sept. 2021.
Under the provisions of section 76 (2) of the Sales Tax Act 1990, FBR is authorized to prescribe the mode and manner to expend such service fee/charges.
Thereafter, FBR issued Common Pool Fund Rules for the welfare of its employees on 16.01.2023 with the approval of the Board-in-Council.
The heads of expenditure provided in the Rules include financial assistance to families of Shuhada, subsidy on marriage expenditure, health insurance, scholarships for education of children, headquarter support allowance, fuel subsidy to the junior officers, IRS officers mess, house rent subsidy, support for widows and burial expenses.
Keeping in view the current economic situation in Pakistan, the Federal Minister for Finance has taken notice of the matter and directed the FBR to put the implementation of these Rules on hold, it added.