Karachi, September 1, 2023 – The Federal Board of Revenue (FBR) has reaffirmed its commitment to ease the tax burden on electricity bills, addressing the concerns of the business community in Karachi and fostering a cooperative relationship with traders.
In a press release issued on Friday, the FBR highlighted its dedication to facilitate the business community by engaging in constructive dialogue and resolving pressing issues. The meeting, which took place on September 1, 2023, at the Corporate Tax Office in Tax House, Karachi, aimed to address various challenges faced by traders and promote Prime Minister’s vision of collaborating closely with traders to resolve their issues.
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The meeting, presided over by Member IR Operations, FBR, was convened in lieu of the Chairman FBR, who was unable to attend due to official commitments in Islamabad.
The discussions during the meeting revolved around key concerns raised by traders, including the reduction of taxes in electricity bills, the impact of rising petroleum prices, measures to combat smuggling activities, addressing the frequent issuance of tax notices, and resolving general grievances.
One of the primary concerns raised by the Traders Associations was the tax burden imposed through electricity bills, particularly for commercial users consuming between 200-400 units. They proposed a specific solution to relax the charging of Sales Tax in electricity bills for this consumer category.
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Member IR (Ops) emphasized the FBR’s commitment to fostering a cooperative relationship with the business community and resolving their issues effectively. He acknowledged the importance of trader input in policy formulation and decision-making processes, stating, “We are here to listen to your concerns and work towards practical solutions. Your suggestions are essential for us to create a conducive business environment. Rest assured, we will take your grievances seriously and address them with utmost urgency.”
In response to specific queries, Member IR (Ops) clarified that recent amendments in the law have extended the auditing cycle to once every five years, providing relief to taxpayers. He also assured that the suggestion related to the relaxation of Sales Tax in electricity bills for small consumers would be duly presented to the Chairman FBR for consideration by the Federal Government.
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The meeting concluded on a positive note, with both parties recognizing the importance of continued collaboration. The Traders Associations appreciated the FBR’s willingness to engage in a dialogue and address their concerns, expressing hope that this meeting marks the beginning of a more cooperative and productive relationship between the FBR and the business community in Karachi.
The FBR remains committed to fostering an environment that eases tax-related burdens, promotes fair competition in the market, and ensures the growth and prosperity of businesses in Pakistan.
