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Karachi: Karachi Chamber Of Commerce and Industry (KCCI), President, Mian Abrar Ahmad, on the visit of Chairman Federal Board of Revenue, Salman Siddique along with his team at KCCI, has strongly demanded to withdraw the unnecessary amendments made in Sales Tax, Federal Excise and Income Tax Return Filing via recently introduced returns filing system and its relevant form, particularly to delete the mandatory condition of CNIC and Annexure “D” of Income Tax.
In the second session of exclusive meeting with KCCI Leadership, President and Office Bearers which continued for over 1 ½ hours, the Chairman FBR agreed to resolve some issues and assured that the final decisions will be made in the meeting of Federal Finance Minister at KCCI scheduled to be held in the beginning of next week.
Earlier in the first open house session, President KCCI, in his welcome address has urged for immediate withdrawal of mandatory condition of CNIC/ NTN vide SRO821(I)/2011 for all purchases made by any unregistered person; delete whole Annexure “D” (Details of Personal Expenses) of Income Tax and withdrawal of Annexure F (Carry forward Summary) and Annexure H (Stock Statement) of Sales Tax owing to complicated calculations and cumbersome exercise which the small business houses cannot comply with.
Similarly related to income tax return, President KCCI pointed out that the calculation of flood surcharge, where the payer’s are expected to calculate 15% surcharge to be exact on 108 days of their annual income is complicated. He demanded to resolve these issues up to the satisfaction of business community simplify the tax filing system and further extend the date of filing of returns.
He also urged that FBR should stop creating such resistance and should involve its own tax machinery to increase the tax net and leave the Business Community alone to concentrate on its business, and enhance income and as a result the tax revenue. Mian Abrar voiced to enhance tax-base and Tax to GDP ratio and stated that high rates of taxes lead to tax evasion, corruption and promote black economy and smuggling regime.
He also urged for equal treatment to the taxpayers and the tax collectors, with no discrimination in respect of penal action. President KCCI said “Unilateral decision shall not be taken by FBR as we are major stakeholder and Karachi alone contributes 68 percent of the revenue so before framing any policy the KCCI should be taken on board.”
Chairman Federal Board of Revenue Salman Siddiqui has assured that all the issues highlighted by KCCI are going to be resolved with Karachi Chamber’s consultation. He recognized the imperative role of KCCI in the national economy and appreciated the productive proposals given by KCCI for the Federal Budget.
He said that FBR was working on the suggestions given by KCCI to enhance tax base. He said that its aim of FBR to increase revenue, decrease expenditure and abridge tax gap. Upon request, the Chairman FBR also announced to open the Assessment Hall of Port Qasim at Customs House Karachi so that the importers/exporters may access the facility without going to Port Qasim.
Chairman Businessmen Group Siraj Kassam Teli urged the Chairman FBR to use its own tax machinery to increase tax-base rather transferring this responsibility to the business community to maintain the information of registered and unregistered tax payers. He said that FBR should not burden the already registered tax payers and clearly inform about its intentions and aims.
The Trade and Industry was already facing manifold problems like power, gas and water outages, law and order situation and 2-weeky holidays. He urged that the dictates of FBR cannot be followed unless the majority of non-tax payers are brought into tax net. He also urged to public the identified persons by FBR who are living luxurious life having valuable assets but not paying taxes.
He suggested Chairman FBR to utilize the data of NADRA and telecommunication companies to find the unregistered persons evading taxes. He assured the support of KCCI and the Business Community in this regard.
Vice Chairman BMG and former President KCCI Muhammad Zubair Motiwala suggested to support the corporate sector which was contributing the major share of revenues to the national exchequer in the form of some rewards so that the unregistered persons may inspire and register them to avail same benefits.
He said that the masses were contributing revenue in the form of indirect taxes. He was of the view to carry out survey of privileged class and find out persons who were not paying taxes and bring them to tax net.
Abdullah Yusuf, Competitive Support Fund (CSF) Consultant and former Chairman FBR highlighted reforms programme of FBR and new developments. Shahid Hussain Asad, Member IRS, Riffat Shaheen Qazi, Member FATE and other officials of FBR from Islamabad and Karachi and Managing Committee Members of KCCI also participated in the meeting.
For more information, contact:
M. Shafiq Baig
Public Relations Officer
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road,
Shahrah-e-Liaquat, Karachi-74000
Tel: +9221 9921 8001 -09
Fax: +9221 9921 8010
Email: pro@kcci.com.pk, pro2@kcci.com.pk
Website: http://www.kcci.com.pk/