KARACHI: Federal Board of Revenue (FBR) is increasing its capacity to handle large size data of tax evaders, FBR chairman said in a meeting with members of Karachi Chambers of Commerce and Industry (KCCI).
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This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.
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FBR not to conduct raids: FPCCI
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday said that the tax authorities have assured of not to conduct raids and harass taxpayers.
Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Dr. Mirza Ikhtair Baig Sr. Vice President FPCCI, Vice Presidents FPCCI, Mr. S. M. Muneer, Mr. Zubair Tufail, former President FPCCI and Sheikh Khalid Tawab Former Sr. Vice President FPCCI hailed the announcement of Chairman Federal of Revenue (FBR) Dr. Jehanzeb Khan made in a meeting with Business Community at FPCCI that henceforth there will be no raids on the tax payer as these raids had created great deal of concern, harassment and anxiety among the business circles.
They also appreciated the decision of Chairman FBR to formulate a Committee consisting of FPCCI and officials of FBR to resolve the day to day issues of businessmen. They assured that FPCCI will not support tax evaders and will look into the individual cases of tax evasion on merit.
The President FPCCI underscored the need of activation of Alternate Dispute Resolution Committee for resolving taxes related cases of Rs. 38 billion. He also suggested early issuance of promissory notes against the refunds as exporters are facing huge capital shortage for making new investments.
He also emphasized on the identification of new tax payers and exploration of new areas for broadening of tax payers instead of putting more burden on the existing tax payers.
The businessmen appreciated FBR for extending date of filing tax returns till March 31, 2019 and urged to enhance the tax base through direct taxes instead of indirect taxes which directly affects the low income group.
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Yarn merchants reject new customs valuation ruling
The Pakistan Yarn Merchants Association (PYMA) has officially rejected the new valuation ruling for polyester filament yarn (PFY) issued by the customs authorities, terming it as “unjust” and not reflective of the current global market prices.
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Business community welcomes govt. resolve for eradicating corrupt FBR elements
KARACHI: The business community has welcomed firm resolve of the government for eradicating corrupt elements from Federal Board of Revenue (FBR) to boost trust level on tax collecting agency.
President Karachi Chamber of Commerce & Industry (KCCI) Junaid Esmail Makda, while hailing Prime Minister’s remarks about reforming the Federal Bureau of Revenue (FBR), said that the business and industrial community highly appreciates PM’s resolve to reform the FBR and also welcomes his warning to create a new tax collection authority if FBR fails to end harassment and corruption which was a good idea. Unabated corrections must continue at the FBR without any stoppage in order to make it taxpayers friendly.
“Either in the existing or the new FBR, there is a dire need to create trust while corruption has to be completely eradicated by immediately expelling the corrupt FBR officials which would help in dealing with the trust deficit and encourage people to come forward to pay their taxes without any kind of fear of harassment”, he advised in a statement issued on Friday.
He pointed out that massive corruption of up to Rs500 billion at FBR was claimed some two to three years ago by the then Ministers who assured to strictly deal with the same but unfortunately not a single step was taken against the element responsible for such a massive corruption.
“It is heartening to see that the present government has given a clear warning to get rid of FBR if it fails to improve as they are also well-cognizant of the miseries being suffered by loyal taxpayers due to massive wrongdoings and unbridled corruption”, he added.
He stressed that in order to achieve the desired objectives, the decision makers in Islamabad will have to take practical steps to end the harassment and arm-twisting tactics being used by FBR officials to gain personal benefits only while the honest officials must be promoted and brought forward at the helm of the affairs.
Junaid Makda was of the opinion that the taxation laws also need to be reviewed in consultation with all the stakeholders as massive discretionary powers have been conferred to FBR officials even at the lower level which are being used as tool for arm-twisting and squeezing the existing taxpayers.
The existing FBR and even any new FBR in future will not be able to generate the desired revenue and provide relief to loyal taxpayers until the government revisits all taxation laws and subsides the draconian discretionary powers.
He also underscored the need to simplify the cumbersome taxation procedures so that maximum number of individuals could be encouraged to pay their taxes while the tax collection authority must be directed to strictly take action against tax evaders instead of overburdening and further squeezing the existing taxpayers.
Appreciating Prime Minister’s positive response on Asset Declaration Scheme and the business community’s apprehensions over last Amnesty Scheme, he said that it was assured that all details of the individuals availing Amnesty Scheme 2018 will be kept confidential but it was not done and more and above, they were asked to submit a very complex and detailed wealth form which was later used by FBR and FIA to harass the beneficiaries of amnesty scheme so it must not be repeated in the new Asset Declaration Scheme which must ensure that the secrecy of beneficiaries’ data has to be maintained while the wealth form must also be simplified with limited details to encourage maximum number of individuals to declare their assets.
As 97 percent of last year’s amnesty scheme was availed by Karachi-based individuals, the government will have to devise effective strategies so that individuals from every nook and corner of the country could avail this year’s Asset Declaration Scheme which would help in documenting the economy, encourage growth and bring thousands of individuals into the tax net, he added.
While extending full support and cooperation to the government in improving the tax collection system, President KCCI hoped that the government would continue to keep reforms at the FBR on top of its agenda until a taxpayers friendly and trustworthy environment is created which is badly needed in order to make Pakistan self-reliant with zero dependence on foreign aids and loans.
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Industry demands separate gas line to avoid losses
KARACHI: The business community has demanded separate gas line for industries and CNG stations in order to avoid production losses.
Saleem Parekh, President, SITE Association of Trade and Industry in a statement on Wednesday said that the common gas line for industries and CNG stations is a ‘hurdle in industrial production’ and also the main cause behind low gas pressure being faced by industries of SITE frequently.
He said that on the days when CNG stations remains open, the industries face acute low gas pressure which is similar to no gas and badly effects industrial production.
Hardly 30 percent industries manage to run on low gas pressure due to which, exporters in particular face delays in timely completion of export orders.
There are approximately 4,000 industries in SITE area, Karachi, out of which 60 percent industries run on gas. As such, the production process of these 60 percent industries stops due to low gas pressure which remains below the required pressure.
Resultantly, the industries suffer losses of billions due to production losses and damages. They quoted that in other industrial zones, separate gas lines have been laid for industries and CNG stations.
Therefore, gas line of SITE Area industries should be separated from CNG stations line in order to maintain the gas pressure required to run industries.
Expressing concern over gas closure for industries on Sundays, they said that on every Sunday, gas remains closed for industries for 24 hours.
However, gas pressure starts to drop 4-6 hours earlier, much before the time given for closure. The effects of one day gas closure last for more than 36-40 hours which ultimately hits industries.
The possibilities of increase in unemployment due to closure of industries cannot be ignored in this matter.
They demanded the Federal Government to direct SSGC to end Sunday gas closure for industries, improve gas load management system and provide gas to industries in required pressure so that industrial production continues without hurdle which is essential to put the country back on the path of economic and industrial development.
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Prime Minister invites suggestions on new tax amnesty scheme: KCCI
KARACHI: Prime Minister Imran Khan has asked business community to give their suggestions for a new tax amnesty scheme, said Junaid Makda, President, Karachi Chamber of Commerce and Industry (KCCI) on Monday.
Makda said that the prime minister recently met representatives of chambers and associations of the country, including KCCI, to take feedback on the economy.
At the meeting the challenges to business community was discussed, Makda said.
The meeting was also attended by federal ministers and advisers.
The prime minister discussed about improving GDP growth. The prime minister also expressed reservations over failure of past amnesty schemes, Makda said.
The prime minister invited suggestions for new amnesty scheme, Makda said, adding that the KCCI suggested amnesty for local taxpayers.
KCCI president said that the business community informed the prime minister that due to difficult tax environment most people preferred out of tax net.
Makda suggested that litigation against taxpayers should be withdrawn. Those taxpayers paying more should be given priority, he added.
KCCI president said that division of filers and non-filers created immense problems. Besides, zero rated and non-zero rated also created difficulties at industrial level, he added.
He also demanded that notices to beneficiaries of past amnesty schemes from NAB and FIA should be stopped.
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Business community applauds Pakistan response to India
KARACHI: The business community has applauded the professional approach of Pakistan air force for downing two India jets, which intruding into Pakistani soil.
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FPCCI condemns air space violation by India
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday strongly condemned India for violating Pakistani air space.
In a joint statement on issued Tuesday the office bearers of FPCCI and business community of Pakistan, condemned India for violating Pak Air Space today.
Vice President FPCCI Dr. Mirza Ikhtiar Baig called it frustration of Modi’s government, to point score for their forthcoming election campaign.
In a question Indian ban and imposing 200 percent custom duty of Pakistani goods, he said it’s now time for our industry to realize to achieve self-reliance in cotton production and import substitution of dyes & chemicals, importing from India.
He said the whole business community of Pakistan and entire private & corporate sector are with the government on this critical junction of time, and are willing to give any sacrifice to defend our beloved country Pakistan.
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KCCI expresses concerns over shifting weekly holiday rumors
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has cautioned that any move to shift weekly holiday from Sunday to Friday would be resisted and it should not be done as it will completely cutoff Pakistan from many western countries around the world for three-and-a-half consecutive days.
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FPCCI laments delay in releasing refunds, duty drawback
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lamented delay in issuance of refunds and duty drawback to exporters.
Engr. Daroo Khan Achakzai, FPCCI, President in a statement on Thursday urged the Finance Minister Asad Umar to release the exports sector’s overall outstanding refund claims including deferred claims; Customs Duty Drawback; DLTL etc., which have been lying pending for payment since long.
FPCCI Chief recalled that he, during the Finance Minister’s Pre-Budget visit to FPCCI Head Office Karachi on January 12, 2019 and thereafter on his post budget visit to FPCCI Regional Office Lahore had stressed the need for an early clearance of back-log of refund claims and automatic payment within the stipulated time limit as the inordinate delay had made the exporters to suffer from liquidity crunch in meeting future export orders well in time.
While referring to the Finance Supplementary (2nd Amendment) Bill, 2019 regarding issuance of Promissory Notes to exporters on annual profit of 10 percent with maturity period of 3 years for stuck-up refunds, he lamented: “There is a very slow progress in processing of the pending Sales Tax refunds and issuance of RPOs.”
He wanted that all types of refunds including DLTL, Income Tax etc, should also be included in the Promissory Note Scheme to help the exporters to overcome financial crunch and ensure availability of working capital.
He proposed that the Government may dole out funds – like for revival of PIA, Pakistan Steel Mills etc., – for clearance of stuck-up refunds, one time full-fledged.