ESTABLISHMENT DIVISION

(Coord Section)

F. No.1 /l/2015-Coord.-.J
Islamabad, the 9'September, 2015

Subject: - POLICY DIRECTIVES FOR PROCUREMENT

& PAYMENT
PROCEDURE IN GOVERNMENT DEPARTMENTS

Please find enclosed herewith a copy of Federal Board of Revenue (FBR)'s

letter No. 3(2
)ST&FE/LP&EIMisc/2014/121940R dated 3' September, 2015 on the
subject noted above for information and compliance.
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(PlyarAji Lakho)
Section Officer (Coord-J)

AiDoint Secretaries OF Establishment Division

Copy to:-

The Rector, National School of Public Policy (NSPP), Lahore

The Secretary, FPSC, Islamabad
The Director General, SWO, Islamabad
The Director General, STI, Islamabad
The Director General, PPARC, Islamabad
The Managing Director FEB & GIF, Islamabad
The Director General (PARD), Peshawar
Deputy Secretary, Management Services Wing, Islamabad

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/

/ GOVERNMENT OF PAKISTAN
/ - REVENUE DIVISION
( . FEDERAL BOARD OF REVENUE

C.No. 3(2)ST&FEILP&E!Misc/2014// / 9 o-e Islamabad, the 3 September, 2015.

To: All Federal Secretaries / Heads of Departments

Chief Secretaries I Provincial Heads of Departments I
The Controller General Accounts

Subject: Policy Directives for Procurement & Payment Procedure in Government

Departments

The Federal Board of Revenue has earlier issued instructions to all government
r 4j departments to make purchases from the registered suppliers. However, it has been observed that
in order to get purchase order from the government departments a large number of suppliers
obtain sales tax registration but they do not comply with other legal requirements such as filing
of returns, payment of due tax etc. thus causing huge loss of revenue.

2. It is pertinent to highlight that as per the policy of government FBR is committed to

broaden the tax base and improve tax compliance in the country. To achieve this purpose,
following policy directives have been approved in relation to procurement and payment
procedure of the government departments by the federal government:

a) A condition may be inserted in the tender notice that only registered suppliers, who
are on Active Taxpayers List (ATL) of FBR, are eligible to supply goods/services to
Government departments.

The payment to the registered persons may be linked with the active taxpayer status
of the suppliers as per FBR database. If any registered supplier is not in ATL his
payment should be stopped till he files his mandatory returns and appears on ATL of
FBR.

The aforesaid two requirements shall not apply to petty purchases and purchases
against quotations.

3. It is requested to circulate these guidelines to all subordinate / field offices for strict

compliance.
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The above directives are being issued in concurrence with Public Procurement
4.

Regulatory Authority (PPRA).

(TT
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Secretary JR (ST&FE/L&P)
Ph: 9201677

Copy to
P.S to Chairman, FBR Islamabad.
P.s to Member (IR- Operations), FBR Islarnabad.
Deputy Director (Legal-i), Public Procurement Regulatory Authority (Cabinet
Division), Islamabad, with reference to his letter No. 1/268/2013/legal/PPRA dated
28-08-2015 for information and further necessary action.