FBR Chairman assures to address genuine grievances of FPCCI members

KARACHI, Mar 16 (APP):Chairman, Federal Board of Revenue (FBR), Dr. Jehanzaib Khan here on Saturday assured the business community that their genuine grievances would be addressed on compassionate basis.
Addressing the members of Federation of Pakistan Chambers of
Commerce and Industry (FPCCI), during his visit to its headquarters,he said adequate coordination and efficient interaction between FBR and business community was very much needed.
“For the very purpose I intend to hold office in Karachi for two days every month,” said Dr. Khan assuring that no raids would be made on their premises and the show cause notices already issued with regard to tax recovery to the regular filers may be withdrawn soon.
Mentioning that present tax to GDP ratio i.e. 11.2 percent of
GDP, is not sufficient to make Pakistan a prosperous and welfare
state, he said broadening of tax base is critically needed.
The FBR Chairman said NADRA data of those non filers who made
frequent foreign visits, purchased luxury cars and paying hefty
education fee of their children is being used to identify new tax
payers.
“This is important as would help us in entering into next
generation of tax collection for the country,” said Dr. Jehanzaib
Khan, also accompanied by an FBR team.
Acknowledging that some of the complaints forwarded by FPCCI
members were genuine, he said a joint committee of FBR officials and FPCCI can be constituted.
Dr. Khan said that a focal person may also be nominated to
coordinate with Chairman of FBR and FPCCI President respectively and take stock of issues and problems of trade and industry with regard to alleged harassment of business community.
About entitled refunds to the tax payers, he said two third of
these would be made through promissory notes and the rest through cash refunds mechanism as payment of total refunds in one go would create revenue shortfall.
He said that those who have filed their income tax return after due date and time would be accommodated as filers and will not be classified as non-filer.
FBR Chairman said tax policy was being prepared to ensure
transparency as well as awareness amongst the tax payer about their
rights so as to avert irregularities and harassment.
In his welcome address, Engr. Daroo Khan Achakzai, President
FPCCI highlighted precarious economic situation and said that Pakistan was passing through a transitory period and radical revolutionary reforms were being made in all sector of the economy including taxation.
He said that government efforts of curtailing imports and levying regulatory duty on imported items have resulted in slashing imports and consequently declining in revenue collection.
He said that previous system of levying penalty on daily basis be restored instead of declaring late filers as non tax filers and
excluding them from active tax payer list.
Dr. Ikhtiar Baig, Senior Vice President, FPCCI proposed to
increase tax net and suggested to activate “Alternative Dispute
Resolution Committees” to realize Rs. 38 billion of taxes pending in various courts for decisions.
SVP of FPCCI urged the FBR to encourage direct taxation system
instead of indirect taxes which is very regressive in nature and a
main cause of increase in inequality.
The meeting was also attended by other senior members of FPCCI
including Muslim Muhammedi, Arshad Jamal, Zubair Tufail, Syed Mazhar
Nasir, Khalid Tawab and others.