FBR Chairman Restricts Audit Period of Business houses to Three years
President FPCCI puts Forward concerns of traders regarding revenue department
Karachi (PR): Mr. Irfan Iqbal Sheikh, President FPCCI, has put forward the concerns and complaints of the business, industry, and trade community of Pakistan to the Federal Board of Revenue during the detailed visit of its Chairman, Dr. Ashfaq Ahmed; along with the top brass of FBR.
FPCCI President said that excessive & unsubstantiated tax notices; maladministration & corrupt elements; requirement of buyers’ NIC copy; huge backlog of refund cases; double taxation; misuse of erstwhile FATA & PATA exemptions; higher rates of corporate, sales and withholding taxes; mandatory POS integration with FBR; the multiplicity of income tax slabs and SRO culture are the major impediments in reforming the taxation system and broadening of the tax base.
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Mr. Irfan Iqbal Sheikh added that 29 percent corporate tax and 17 percent sales tax are too high for economic growth, industrialization, and employment generation; and, rates of these taxes should be gradually and progressively brought down. He elaborated that no country in the world has ever progressed in the absence of industrialization; while commending the recently announced industrial growth package of the federal government.
Engr. M.A. Jabbar, VP FPCCI, emphasized that we have to do away with the notice manufacturing practices of the taxation machinery as that prohibits the new taxpayers to register themselves into the system to avoid unnecessary regulatory interferences.
Dr. Ashfaq Ahmed, Chairman FBR, expressed his willingness to have policy deliberations over FPCCI’s demand of reducing the audit period to three years from the current six years. He also apprised the session that FBR has performed exceedingly well despite the debilitating economic conditions arising out of the COVID-19 pandemic and has collected record taxes. He also expressed his optimism that FBR can soon achieve a Tax-to-GDP ratio of 12%.
On the question of refunds, FBR Chairman said that we are moving towards a real-time refunds system; where we aim to reform the refunds system in a way that refunds will be processed swiftly, if the claims are verified and no liabilities are outstanding.
Dr. Ashfaq Ahmed has called upon the business community to prepare sector-specific recommendations to be incorporated into budget-making exercises from the apex platform of FPCCI. He also admitted that all is not well with the tax collection system; and, major reforms and studies are underway.
