The National Board of Revenue (NBR) plans to take action against business establishments that fail to submit Value Added Tax (VAT) returns by today (Thursday).
Traders demanded that the VAT return submission deadline should be extended as many business establishments would not be able to file returns due to restrictions announced by the government to prevent the spread of Covid-19 infections.
But the NBR said all Customs, Excise and VAT offices in the country are working on a limited scale to facilitate VAT return submission despite strict restrictions.
Besides, opportunity is there to give VAT returns online, said an NBR official.
As per rules, every business has to submit VAT return along with their previous month's account by the 15th of the following month. Otherwise, interest and penalty are to be counted.
Businesspeople said most of the establishments remained closed for the lockdown restrictions. The industrial production and service sector remained open on a limited scale, so the VAT return submission deadline should be extended.
"According to the law, there is no opportunity to extend the time. This is a special arrangement to ensure the submission of VAT return within the stipulated date . . . all customs, excise and VAT offices in the country are open amid Covid-19," said an NBR official.
Earlier in April, an NBR order said that under the Value Added Tax and Supplementary Duty Act, 2012 and the Value Added Tax and Supplementary Rules, 2016, businesses are required to file VAT returns within 15 days of the end of the month. Otherwise, there is a provision for imposition of interest and penalty.
For this reason, all the customs, excise and VAT offices of the country are open even during the strict restrictions announced by the government to assist the traders in filing monthly VAT returns.
The NBR also said that the businesses will be able to apply to the concerned VAT office in compliance with the health rules. At that time, the employees will take precautionary and safety measures related to Covid-19 and will receive the submission and collect the revenue.
According to the NBR, about 231,000 companies have received online VAT registration, of which 98,000 file regular VAT returns, and 20,000 to 22,000 companies submit VAT returns manually.
