The Sindh High Court on Saturday suspended the requirement for traders to submit an affidavit when filing sales tax returns.
The decision came during a hearing on several petitions filed by traders through their legal representative, Asad Ashfaq Tola.
The court responded to concerns that the FBR's directive to attach an affidavit to the sales tax return violated the Sales Tax Act of 1990, which does not stipulate such a requirement.
Petitioners argued that the affidavit imposed an undue burden on them, compelling applicants to verify the actions of their suppliers—an obligation they contended was unnecessary and against the established rules.
On October 17, the FBR mandated that sales tax returns for September 2024 be filed along with affidavits, a move that sparked immediate backlash from the trader community. In response to the outcry, the Sindh High Court ordered that the condition be suspended until the next hearing scheduled for November 1.
During the proceedings, the court directed the concerned commissioners to appear and provide their stance on the matter. Additionally, the court has made the FBR's declaration part of the official record, ensuring that sales tax returns for September can be submitted without the requirement of an affidavit.
