Karachi, August 4, 2023 – In an effort to expedite the resolution of tax matters affecting the business community in Karachi, the Chairman of the Federal Board of Revenue (FBR), Amjad Zubair Tiwana, announced the formation of a high-powered committee.
According to sources, the decision was made during a meeting held with the office bearers of the Karachi Chamber of Commerce and Industry (KCCI) on Friday.
READ MORE: Pakistan Customs Official Awarded Major Penalty for Corruption
The committee is composed of three Chief Commissioners from the Karachi Tax Offices and three senior members of KCCI, including Jawed Bilwani, Haroon Farooqui, and Mohammad Haris Agar. The primary objective of this committee is to promptly address and resolve the numerous tax-related grievances raised by the business community of Karachi.
The visit of the FBR Chairman to the Karachi Chamber was in response to the special instructions of Prime Minister Shehbaz Sharif, who himself visited Karachi a couple of days ago. The Prime Minister’s concern for the tax-related challenges faced by the business community prompted the Chairman to take decisive action.
READ MORE: Income Tax Rates on Prize Bond Winnings in Pakistan for FY 2023-24
The business community in Karachi has been grappling with a range of complaints against the tax machinery. Key issues include long-pending sales tax refunds, a high number of tax audit notices, outdated valuation rulings, and concerns regarding the Drawback of Local Taxes and Levy (DLTL).
The members of KCCI, during the meeting, brought attention to the fact that billions of rupees in sales tax refunds have been pending for several months, with many claims being rejected or deferred due to minor issues. This situation has created financial burdens for businesses in the city.
READ MORE: Badshah Khan Wazir Appointed as FBR’s Member Inland Revenue – Operations
In response to the concerns raised by KCCI, Chairman Zubair Tiwana assured the members that efforts would be made for the early release of pending refunds. However, he expressed his inability to guarantee immediate progress on the DLTL issue, as the government had not allocated sufficient funds for this purpose in the budget for the fiscal year 2023-24.
READ MORE: FBR Notifies Tax Rates on Immovable Property Rental Income for 2023-24
The formation of the committee is seen as a positive step towards addressing the challenges faced by businesses in Karachi and is expected to facilitate open dialogue between the tax authorities and the business community. It is hoped that this collaborative effort will lead to timely solutions and alleviate the burden of tax-related problems for businesses, ultimately fostering a more conducive environment for economic growth and development in the region.
