Tax Laws (Second Amendment) Ordinance 2019 was passed by the National Assembly and was promulgated through Presidential Ordinance in December 2019.
After passage, Tax Laws (Second Amendment) Ordinance 2019 shall be called as the Tax Laws (Amendment) Act, 2020.
A copy of the Act has been issued by the FBR and this act amends Section 33 of Sales Tax Act, 1990.
As per this amendment:
- Any person, who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording of such transactions, or issues an invoice which does not carry the prescribed invoice number or barcode number or barcode or bears duplicate invoice number or counterfeit barcode, or any person who abets commissioning of such offence.
In the cases mentioned above, a penalty of higher of Five hundred thousand rupees or two hundred per cent of amount of tax involved shall be imposed on such person. Upon conviction by a special judge, such person shall be liable to an imprisonment up to maximum of two years or an additional fine shall be charged from the person, which may extend to two million rupees, or both.
Further, upon conviction by a special judge, a person who abets commissioning of such offence shall be convicted with an imprisonment of up to 1 year or with an additional fine up to two hundred thousand rupees or both.
- Another amendment as per this act is the case in which a person fails to register his business for monitoring, tracking, reporting or recording of sales, production and similar transaction under the computerized system, while he was required to be registered with the act. The second case is the registered person who fails to integrate with this system the way as required by the law.
A penalty of up to one million rupees shall be imposed on such person and if such offence remains continued after a period of six months of the imposition of penalty as mentioned above, the business premises of such person shall be sealed and an embargo shall be placed on his sales.
- Any person being a manufacturer or importer and deals with such items whose basis of taxation is retail price and such person fails to print retail price in the manner as stipulated by the Act.
A penalty of higher of ten thousand rupees or five per cent of the amount of tax involved shall be imposed on such person.
Further, such goods shall be liable to confiscation. However, the redemption of the confiscated goods may be allowed by the adjudication authority, in case payment of fine made is not less than twenty per cent of the total retail price of such goods.