Source of investment shall not be probed by tax authorities for new investment made in industrial undertaking on or after 1st January 2014: Commissioner Income Tax

Islamabad, February 20, 2014 (PPI-OT): A delegation of representatives of local markets led by Khalid Chaudhry, Senior Vice President, Islamabad Chamber of Commerce and Industry called on Mr. Taj Hamid, Commissioner, Income Tax, FBR and discussed various options to help the business community to play an active and positive role in improving the tax revenue of the country.

Mr. Taj Hamid, Commissioner, Income Tax briefed the business community about the Prime Minister’s Tax Incentives Scheme. Highlighting the salient features of the scheme, he said the scheme aims to promote investment in priority sectors, provide immunity from audit to existing taxpayers, motivate dormant NTN holders and encourage new taxpayers.

He said according to this scheme, source of investment shall not be probed by the tax authorities for any new investment made in an industrial undertaking on or after 1st January 2014 or any commercial production is commenced before 30-06-2016.

About immunity, he said the scheme provides immunity from audit to those existing taxpayers who paid 25% higher tax during 2013 than the tax year 2012 or who revised returns to pay above tax.

Similarly exemption from audit, additional tax and penalty have been provided to those NTN holders who did not file returns during the last five years or since obtaining NTN if they file outstanding returns by 28-02-2014, pay minimum Rs.20,000 tax for each year and do not claim adjustment of tax withheld, if any. He said business community should take benefit of this scheme by coming into tax net and to avoid any heavy penalties.

Speaking at the occasion, Khalid Chaudhry, Senior Vice President, Islamabad Chamber of Commerce and Industry said that business community is fully cognizant of the importance of improving tax revenue for the development of the country and for providing better facilities to the general public.

However, he said all measures aimed at broadening the tax net should be taken in consultation with Chambers and trade bodies as decisions taken with consensus produce better results. He said government should set specific targets for tax revenue as well as targets for the number of new taxpayers added to the tax net instead of putting more burdens on existing taxpayers.

He said the Prime Minister’s Tax Incentives Scheme is aimed at taxpayers of previous 5 years and stressed that government should also announce similar kind of incentives scheme for future taxpayers covering 5-10 years period.

It will improve trust and encourage potential taxpayers to come into the tax net without any fear. He said extreme measures against taxpayers like monitoring of business outlets by FBR officials may be avoided with prior consultation with representatives of the business community or local chambers and such confidence building measures will improve the relations of the tax collectors and tax payers.

Muhammad Ejaz Abbasi, Naeem Siddiqui, Mian Muhammad Ramzan, Ajmal Baloch, Muhammad Hussain, Syed Adil Anis, Musharaf Janjua, Abdul Ghaffar Chaudhry, Tahir Ayub, Khalid Mian and many other representatives of markets were in ICCI delegation.

For more information, contact:
Khalid Chaudhry
Islamabad Chamber of Commerce and Industry
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1,
Islamabad, Pakistan
Tel: +9251 225 0526 and 225 3145
Fax: +9251 225 2950
Email: kchicci@gmail.com
Website: www.icci.com.pk