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Karachi: Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), recently announced that the Federal Board of Revenue (FBR) has agreed to FPCCI’s demands for ceasing the harassment of genuine taxpayers, focusing instead on tax evaders and defaulters.
According to Federation of Pakistan Chambers of Commerce and Industry, during a detailed meeting with Rashid Mahmood Langrial, Chairman of FBR, it was agreed that only tax evaders or defaulters should be targeted for notices. The FBR Chairman also called for FPCCI’s support to encourage all traders and industrialists to file their returns accurately and transparently, a stance to which the FPCCI delegation agreed, provided that tax collection and policymaking are conducted in a consultative manner.
Atif Ikram Sheikh appreciated FBR’s decision to withdraw the requirement for chief financial officers of companies to sign an affidavit for sales tax filings, pointing out that existing regulations already provide sufficient framework for responsible filing. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, expressed concern over FBR’s ambitious revenue target of PKR 12.97 trillion, noting that this could lead to new taxes and increased burden on already taxed entities given the slow economic growth rate of 2-3 percent.
The meeting also covered issues such as the abrupt policy changes affecting exporters, the unconsulted implementation of the Tajir Dost Scheme, and the problems with SRO 350(I)/2024 which, despite amendments, remains problematic due to lack of stakeholder consultation. Magoon also highlighted inefficiencies in the Export Finance Scheme and proposed simplifications to aid businesses.
Furthermore, the inclusion of Export Processing Zones in the regular tax scheme and the exclusion of local industries from the Export Finance Scheme were criticized for potentially causing significant losses and dissatisfaction among investors.
Khurram Ejaz, advisor to the FPCCI President on FBR affairs, called for improvements in Pakistani ports and terminals to allow 24/7 operations and reduce dwell times, aligning with international standards. Chairman Langrial acknowledged the necessity for tax rate reductions to improve compliance but noted current constraints prevent immediate implementation.
The discussion also addressed issues raised by Muhammad Ayub, President of the Quetta Chamber of Commerce and Industry, regarding delays in cargo container processing at Panjgur, which FBR committed to resolving promptly.
The post FPCCI Advocates for Fair Tax Practices and Consultative Policymaking with FBR appeared first on Pakistan Business News.