FBR has introduced an Automated System for providing tax exemption certificates. The exemptions will be issued under the Section-148 of the Income Tax Ordinance-2001.
The automated system will ask for a predetermined list of documents from the applicant and that information will be then analyzed by the system’s Automated Risk-Based Mechanism. The application will be forwarded to the commissioner, who will issue the exemption certificates.
The commissioner will issue the certificates within a few days of the filing of the application. The timings for issuance of certificates after filing the applications are as follows:
– 7 days if the applicant is a public limited company.
– 10 days if the applicant is a private limited company.
– 15 days in case of all other persons
If the commissioner does not issue the certificates within the prescribed time limits, the system itself will issue the tax exemption certificate but that certificate will be provisional for all except the private and public limited companies. The system will not automatically issue an exemption certificate in cases where the commissioner has issued the exemption within 7 days.
At the time of the launch of the system, the FBR officials requested all users for feedback and suggestions for improvements in the system.