Sindh High Court Suspends Affidavit Requirement for Sales Tax Returns

In a significant legal development, the Sindh High Court on Saturday suspended the Federal Board of Revenue’s (FBR) recent requirement for traders to attach an affidavit when filing sales tax returns. This decision was made in response to petitions filed by traders, who argued that the directive imposed an undue burden and violated the Sales Tax Act of 1990.

The traders, represented by Asad Ashfaq Tola, contested the affidavit requirement, stating that it unfairly obligated them to verify the actions of their suppliers. The FBR had mandated that sales tax returns for September 2024 be submitted with an accompanying affidavit, sparking immediate backlash from the business community.

The court responded by temporarily suspending the requirement and set the next hearing for November 1. The commissioners involved in the case have been ordered to present their stance at the next hearing. This interim relief allows traders to file their September sales tax returns without the affidavit, bringing some reprieve to the business sector.

The case has become a flashpoint between traders and tax authorities, raising questions about the legal boundaries of the FBR’s mandates. As the legal battle continues, the trader community is eagerly awaiting the final verdict.