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Tag: Federation of Pakistan Chambers of Commerce and Industry

  • Tax exemption withdrawal ahead budget to adversely affect trade, industry

    Tax exemption withdrawal ahead budget to adversely affect trade, industry

    KARACHI: The apex trade body of the country has expressed reservations over withdrawal of tax exemptions ahead of federal budget 2021/2022 and said that it will adversely affect trade and industry.

    Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and industry (FPCCI) in a statement on Sunday said that under the prevalent difficult condition of COVID-19, the pre-budget withdrawal of number of exemptions will affect trade and industry negatively, which is based on planning of fiscal based promised position for year up to June-2021.

    “Such non predictability is against the sustainable growth of business economy and encroaches upon ease of doing business,” he said.

    He was referring to the Tax Laws (Second Amendment) Ordinance, 2021 dated March 24, 2021.

    While expressing concerns over the amendments before budget, he said that FPCCI has already suggested that the amendment should be made only with prior consultations with, to be affected stakeholders with sufficient time space to prepare the future plan of the left out period up to June-2021.

    The outcome of consultations of both public and private sector may have otherwise trimmed the contents of the ordinance in the business economy interest, equally important for government in terms of goodwill and believe in consultations with private sector.

    He further said that the business sector is already facing tight restrictions as per IMF program conditionality, much being agreed amongst stakeholders as originating implementation directions concurred by public sector without any reference to the negotiations with private sector.

    The amendments were introduced through the Tax Laws Amendment Ordinance, 2021 issued through presidential Ordinance to amend 76 corporate income tax exemptions and allow tax credit facility from March 24, 2021.

    The tax credit facility has been extended to industrial undertakings; charitable organizations and IT export services. Under the Ordinance, 100 percent tax credit would be allowed to the IT services or IT-enabled services after fulfillment of certain conditions including the filing of returns/withholding tax statements.

    President FPCCI further stated that withdrawal of exemptions in lieu of extending credit facilities is a measure which gauges the poor performance of FBR up till now and hence the collection targets are finding the only priority and it appears that FBR is running on a bad doctrine that more tax collection will improve the growth of economy, to which we disagree in absolute terms.

    President FPCCI Mian Nasser Hyatt Maggo also said that the newly promulgated Ordinance 2021 is also limiting the charitable activities by allowing restricted number of such institutions and placed them under newly introduced 13th schedule for Section 61 of the Income Tax Ordinance.

    President FPCCI said that we are not following the successful tax models which are based on reducing the tax rates and extending the facilities to be affecting the increase in tax collections, rightly agreed by the apex body that Laffer curve will result in maximum tax revenue for government by cutting taxes in certain circumstances that would allow governments to cut the taxes and simultaneously increase revenue and economic growth.

    President FPCCI said that public sector negotiating with IMF in exclusion of participation of apex body representing private sector trade, industry and service sector is dictatorial impositions of decisions negatively affecting the business and its growth for reducing the fiscal deficits, a prime objective we believe is being asked for by IMF.

    He further said that country like US during the period of Ronald Reagan, 40th US President, the tax cuts resulted in doubling the tax from USD 500 Billion to Dollar 01 Trillion. The Georgian politicians and businessmen together in the reforms reduce the number of taxes to 1/3rd and reduce the national tax burden to quarter of a GDP resulted in doubling the percentage of taxes from 13 percent to 25 percent of GDP.

    He further said that the case of India is no exemption wherein single GST increase the GST registrations by almost 100 percent.

    “We are not learning any lesson from the available examples of tax reforms and what we are marching towards is to hide our inefficiencies in tax administration by withdrawing the exemptions, imposing RDs, ACDs and taking all the measures which has made the whole taxation structure full of the anomalies,” he said, adding that the government should think about that if either the economy will generate taxes or imposition of increase in taxes will generate growth of the economy.

  • FPCCI hails speedy customs clearance

    FPCCI hails speedy customs clearance

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday hailed the tax authorities for speedy customs clearance to goods imported by erstwhile FATA/PATA.

    Mian Nasser Hyatt Maggo, President and Nasir Khan Vice President of the FPCCI appreciated the FBR for its efforts to improve ease of doing business and trade facilitation by allowing clearance of goods imported by ERSTWHIL FATA/PATA and installations of tracking devices manually to ensure en-route monitoring and tracking till the development of the functionality in the WEBOC system.

    They further informed that under this FBR directives the processing of such consignments may be cleared in the system by the respective Collectorate after implementation of the required conditions as prescribed in the CGO and Board instructions.

    M/s. TPL Trakker (Pvt.) Ltd. has been assigned for manually installation of tracking devices for consignments.

    Control mechanism for clearance of such consignments will remains with the Collectorate while it may get the written confirmation for concerned clearing agents/bonded carriers.

    While referring FBR’s Order issued on March 17, 2021 they said that FPCCI have been emphasizing for development of economically deprived regions through enhancement of transit trade by improving trade facilitations.

    They further added that the global economic scenario has drastically changed, e-commerce and digitalization has gained significance for international trade therefore, FBR and other stakeholders should also follow and improve their working according to the new technological development in trade.

  • FPCCI expresses concerns over falling foreign direct investment

    FPCCI expresses concerns over falling foreign direct investment

    KARACHI: Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has expressed concerns over falling foreign direct investment (FDI) despite incentives granted to foreign investors.

    In a statement issued on Saturday, the apex trade body expressed serious concern over the falling trend of foreign direct investment. The FDI fell by 30 percent in the first eight months of FY21, reflecting foreign investors’ poor confidence in the country’s investment environment.

    The government has been claiming to endeavor to invite foreign investment in the housing sector but failed to make the sector attractive in this regard. Investment in construction industry has improved at local level but the sector has huge prospects for foreign investors, as the country has been lacking more than 10 million housing units for its 220 million people, observed Mian Anjum Nisar, the FPCCI’s ruling group BMP Chairman.

    “We need to prepare the ground for attracting larger FDI flows in the medium and long-terms, making the local environment more attractive for foreign investors. Pakistan should continue to get some FDI under the China-Pakistan Economic Corridor (CPEC) and even accelerate its inflows by gaining wider domestic socio-political support for CPEC projects and by removing procedural bottlenecks that delay their timely implementation,” he added.

    He said that faced with a balance-of-payments issue, country urgently needed as much foreign investment as possible keeping in view of limited scope of volumetric expansion in exports and remittances in the short-term.

    Mian Anjum Nisar said that Pakistan has been unable to attract any sizeable foreign investment for the last several years despite providing incentives on taxes and assurances for one-window facility to the investors.

    Statistics show that the country received $1.3 billion in FDI during July-Feb 2020-21 compared to $1.85 billion in the same period of last year, a decline of 29.9%, indicating that the government has failed to win the confidence of foreign investors in the national economy due to multiple reasons. Moreover, the inflow of FDI in February has registered a steep fall of 44% to $155 million against inflow of $277.5 million in Feb 2020. It is fact that the entire world has been witnessing falling inflows of FDI due to the Covid-19 pandemic.

    “The pandemic has eroded the trust of investors in investment, which has an adverse impact on every step of FDI, including input supplies, increasing uncertainties and liquidity constraints for the multinational firms, he said and added there are also other external factors out of the government’s control.”

    It is unfortunate that the portfolio investment also presented a dark picture as it noted a net outflow of $256 million during 8MFY21 compared to an outflow of $26.3m in the same period last year.

    The State Bank of Pakistan (SBP) data showed that the overall foreign private investment during 8MFY21 dropped by 43% to $1.04 billion compared to $1.83 billion in the same period last year.

    The BMP chairman said that the Chinese investment remained at the top of the list of countries invested in Pakistan but the inflows from Beijing also dropped to $493 million during 8MFY21 despite the fact that for last several years China has been the top investor in the country.

    While the country is getting extra support from remittances being sent by the overseas Pakistanis, it looks still hard to improve the foreign investments and exports to any significant level.

    The FPCCI leader said despite all-out efforts and incentives, exports grew slowly while foreign investment could see a change once the country exited the FATF grey list. The status quo for international investment for Pakistan has always focused on coal and power but the government should tap into the small, growing sectors, such as technology, to see how it can build a more sustainable economic base, even in times of crisis.

    Mian Anjum Nisar observed that the government, now in its third year, is trying to take FDI to new heights but its efforts are yielding a moderate success only, as the foreign portfolio investment in equities, too, remained negative in 2018-19 and 2019-20 in continuation of an earlier trend.

    The FPCCI former chief said that economic fundamentals are not strong and fast-changing dynamics of geopolitics demand too much from the country if it wants to attain sustainable economic growth and development. These two factors, combined with the Covid-19–triggered recession in major economies, make it difficult to accelerate growth of foreign investment.

  • Importers face surcharges on overstayed consignments

    Importers face surcharges on overstayed consignments

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has discussed the matter of overstayed consignments at warehouses which was causing surcharges on clearance to importers.

    FPCCI President Mian Nasser Hyatt Maggo on Thursday said that due to COVID-19 commercial activities are down causing overstay of consignments and subsequently facing surcharge on clearance. During the meeting of the FPCCI Advisory Council on Budget various issues were discussed including period of limitation of warehousing.

    The President FPCCI said that the economic slowdown, recession in the market and financial constraints due to COVID-19, importers are unable to clear their consignments in time which has led to a situation where large quantities of warehoused goods have piled up incurring heavy surcharge as no general concession has so far been extended by the Federal Government in this matter. The situation is also impacting substantial amount of revenue.

    During the meeting of the Advisory Council headed by Mr. Zakariya Usman former President of FPCCI issue of importers of raw material were presented who are facing problems due to their consignments lying in customs bonded warehouses beyond the period stipulated under section 98 of the Customs Act, 1969. The meeting resolved to approach FBR to consider grant of waiver of surcharge on overstayed consignments in order to alleviate the problems of the importers.

    Mian Nasser Hyatt Maggo President FPCCI said that the government under the present difficult circumstances may favourably consider the enhancement of customs bonded warehousing period limitation up 60 days so as to mitigate hardship of importers.

  • FPCCI demands restriction withdrawal on input tax adjustment

    FPCCI demands restriction withdrawal on input tax adjustment

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the tax authorities withdraw restriction on input adjustment under Sales Tax Act, 1990.

    A statement issued on Wednesday said that Advisory Council of the FPCCI on budget found various laws and regulations that failed to generate much revenue on the other hand badly affecting ease of doing business ranking of Pakistan.

    Mian Nasser Hyatt Maggo President FPCCI in this regards has already communicated to the Prime Minister and other concerned ministries for such impediments that are negatively impacting economic growth.

    During the meeting Advisory Council of the FPCCI has decided to extend its full support and cooperation to the government which is struggling to improve economic environment under the adverse conditions created by COVID-19.

    The Advisory Committee during its first meeting analysed the hardships being created under section 8B of the Sales Tax Act, 1990, wherein a registered person is not allowed to adjust input tax in excess of ninety percent of the output tax.

    “This restriction not only restrains the taxpayer to claim its legitimate input tax but is also affecting the ease of doing business and thereby increasing the cost of business.”

    The Advisory Council under the Convenership of Mr. Zakariya Usman former President of FPCCI reviewed the whole scenario and after due diligence unanimously proposed that hardship and discrepancy created by Section 8B of Sales Tax Act should be removed in the adjustment of input and output tax by allowing 100 percent adjustment of input tax.

    Amendment in Section-8B of Sales Tax Act 1990 should be made in the coming budget to allow 100 percent adjustment of input tax against output tax to all registered persons in order to remove anomalies.

    Mian Nasser Hyatt Maggo President of FPCCI has categorically informed that the present global and domestic conditions are completely different; COVID-19 has changed the world economic situation dramatically as most of the businesses are struggling for their survival.

  • Business community hails decision to simplify tax laws

    Business community hails decision to simplify tax laws

    KARACHI: Business community has praised Prime Minister Imran Khan for issuing directives to the authorities for focusing on tax reforms, simplification of tax laws and plugging loopholes in existing tax system, a statement said on Sunday.

    Mian Nasser Hyatt Maggo President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) lauded Prime Minister Imran Khans directives to focus on reform in tax regime, simplification of tax laws, plugging existing loopholes, reduction in discretionary powers of tax collectors, automation to bring transparency in tax system.

    He said that it is heartening that Prime Minister is equally concerned with the tax reforms for accelerated growth. He said that understanding of Prime Minister in this regard shows his deep insight on the issues that are impeding economic growth with great attachment to the business community of Pakistan.

    He further stated that the Prime Minister has rightly taken up the issue of reforms in tax regime. The structure of taxation in our country is regressive, with indirect taxes accounting for major of total federal government tax collection.

    Tax collection is also disproportionate; industry being overburdened with tax payment of more than 60 percent against about 20 percent size in GDP. The present tax structure is complex because of overlapping jurisdictions with different laws and frequent policy changes through on almost daily basis by issuance of instructions, clarifications, changes in rules, CGOs, STGOs, ITGOs.

    The income tax, GST on goods, customs duties, federal excises is collected by the FBR while GST on Services is collected by provincial Revenue Boards/Authorities which also fragments Pakistan into five business market economies.

    The withholding tax regime of over 65 in numbers is also problematic and businessmen have been made withholding agents to deposit the tax for FBR.

    The President FPCCI said that the tax returns should be simplified and easily understandable particularly for SMEs and make it single page document. The present system requires almost all the tax returns filing persons to have further burden of associating the service charges of tax consultants and lawyers due to complicated tax operating system.

    He also informed that he has already written letter to Prime Minister for considering various suggestions on required tax reforms including complex Income Taxation to change to Flat Rate Taxation, taxation system to induce investments, multiple sales tax to change to single stage sales tax across the Board with exemptions on food, live saving drugs, educational instruments. Further the low rate Custom duties without additional custom duties, regulatory duties are answerable to impeding connived smuggling, mis-declaration. The Appellate tax system should be converted into independent tax judicial system in conformance with the requirement of constitution to increase the trust of businessmen in the taxation system.

    Mian Nasser Hyatt Maggo said that taxpayers bill of rights, protection of businessmen against retaliations by tax officials and accountability of tax officials should constitute fundamental to the requirements of tax reforms. The FPCCI has been demanding withdrawal of discretionary powers vested with the tax officials to avoid their misuse as presently FBR has become show-cause generating machinery for existing taxpayers, as are being informed to us at large.

    He stated that to wipe-out corruption there is need to improve automation in tax system and develop local software and Apps with simplified system so that interaction of human resource should be reduced and strengthening of information technology system can combat issuance of connived bogus sales tax refunds which not only affect government revenue but also damage business community credibility and trust.

    Mian Nasser Hyatt Maggo the President of the federation of Pakistan chambers of Commerce and Industry appreciated that a very good move has been done by present government by separating tax policy unit under Ministry of Finance and not under revenucracy adjustment methods of FBR who are only making tariff rate adjustments and making changes in statutes on compulsions due to observations of High courts and Supreme courts during budgetary exercises.

    He said that may be this year the budgetary exercise if is done by tax unit in Ministry of Finance may lead to compliance with directives of Prime Minister on tax reforms.

  • FPCCI demands autonomy of FBR officials for immediate resolution of tax matters

    FPCCI demands autonomy of FBR officials for immediate resolution of tax matters

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded autonomy of senior officials of the Federal Board of Revenue (FBR) so they take on spot decisions to resolve tax issues.

    In a statement, Nasir Khan, Acting President of the FPCCI said that the business community had raised many problems pertaining to duty and taxes but the tax machinery had shown either no response or given low priority.

    He said that the issue of CNIC still not resolved despite COVID-19, the issue has reduced business activities. He stated that numerous laws and regulations have been imposed on the business sectors while at highest level meetings the FBR officials are unable to responds which is not suitable just time consuming.

    “The highest level official should have autonomy to resolve and decide the issues being raised in the meetings.”

    During the meeting with Chairman FBR the working of the FBR was discussed which is not up to mark and no sign of any trade facilitation is seen.

    There is no representation of this apex body of trade and industry in the various crucial decisions being taken by the FBR i.e., formulations of the resolution committees and issuance of SROs without consultation.

    During frequent visits of Member IR (Operation) to the FPCCI Head Office wherein, a number of problems were put forward for decision but instead there should be any relief to the trade bodies no fruitful decision is made so that even a single problem is resolved.

    Instead to increase the net of the taxpayer the FBR machinery is engaged to squeeze the traders which are already under tax net. The seriousness of the FBR towards tax collections may be noted from the fact that there is no representation of the FPCCI in various committees.

    It seems that there is a wide communication gap between the apex trade body and the FBR Headquarters and if the position is not improved then the net results in progress to resolve trade related issues will be zero.

    While participating in the meeting Zakaria Usman, Convener, FPCCI Budget Advisory Council expressed that is in trade business for more than 50 years and still would like to see a economical budget to be implemented by the FBR instead of revenue oriented budget.

    FBR is lacking consistency in policies which change rapidly affecting the working of businessmen and the commodities are gone out of costing.

    The policy of FBR to squeeze the already registered taxpayers may be shifted to a mechanism to explore new taxpayers and avenues accordingly.

    He suggested a cascading system spreading on five steps which is more economical and tax oriented. Secondly the policy to issue SROs over the night may be come to an end forth with. Regarding valuation he shared his views that the system of valuation prevailing worldwide on the basis of scan prices may be adopted immediately instead to issue valuation rulings on the will of valuation directorate who issue such rulings without taking the stakeholder on board.

    He quoted the example of plastic scan where the valuation prices are issued by the plastic association and applicable evenly on all the importers. Prime Minister is keen to move the country towards industrialization.

    The formation of trade zones will certainly be helpful extending the required benefits for the industries working in these zones. But is it sorry to say that the goods intended to be used in tax free zones are pushed in the tariff areas thus affecting the traders who are doing business in the tariff area after paying the statutory rate of customs duties and taxes.

    He suggested that CNIC problem should be resolved on priority.

    Nasir Khan shared with the Chairman the idea of one window operation that all the taxes are collected on same place including its adjudication etc., so that the traders may not run from pillar to post for redressal of their problems.

    He said that the traders of Balochistan have problems with the intelligence on valuation issues. The trade bodies struggled and helpful to stop smuggling in the province. Another problem he pointed out regarding DTRE approvals that it takes days and month to dispose the DTRE applications.

    He also suggested that trade bodies may be taken on board and on transfer / posting of the officers so that the willing officer could be pointed out for smooth running of day to day issues.

    Hanif Lakhani, Vice President of FPCCI suggested review of SRO 1065 for industrial investment and the advantages may be given to the stakeholders as the advantages extending to reconstruction industry.

    Khurram Sayeed, Former Vice President of FPCCI congratulated the Chairman on the targets of tax collection for the last seven months. He said that tax net to be broadened rather than to impose new taxes on the taxpayers which are already registered.

    He pointed out a new practice of FBR to issue notices to the taxpayers for the last five years. The officials when contacted they say that the notices are system based and we will rectify the data accordingly. He also said that It is against the judicial norms that Income Tax Officer who issue notices for recovery conducts the hearing himself which should have been heard by a separate officer.

    Khurram Ijaz, Immediate Past Vice President of FPCCI supported the view of President FPCCI to establish a Help Desk of FBR in the FPCCI Head Office and requested the Chairman that at least this decision may be finalized today.

    He further suggested that there should be a meeting of FBR Officers with the FPCCI representatives within two weeks’ time to hear the trade bodies and to consider budget proposals.

    Engr. M. A. Jabbar, Former Vice President of FPCCI said that the consultation of FPCCI and FBR on tax matters is almost zero. It is high time to take decisions by FBR on then and there basis rather than to shift the matters on committees / sub-committees. If there are no changes in the system then one cannot expect improvement in the taxation system that is why we are more interested in a fixed tax system rather than the present one. 

    Sultan Rehman, Immediate Past Vice President of FPCCI informed that current notices of Section 82 being issued by IRS for late filing of returns may be withdrawn immediately keeping in view the COVID-19 pandemic.

    Shabbir Hassan Mansha, Convener, FPCCI Customs Standing Committee pointed out the chronic issue of non-cooperation of shipping companies as they are not accepting the delay detentions. He suggested to improve the provisions of Section 14A in the current Budget so that the dominance of shipping companies and terminal operators could be reduced.

    He requested for regulation of Port & Shipping Laws so that terminal operators and shipping agents may not be able to shift their responsibilities. Another issue is the rent of the containers which sometimes exceeded the price of container itself. He suggested that a copy of SROs / Notifications / Orders may be endorsed to the Manager, FPCCI FBR Affairs Wing so that prompt within time may be taken in the best interest of trade bodies.

    Haroon Farooqui former President KCCI pointed out a hidden lobby who is working for their agenda and disturbing the overall trade friendly atmosphere creating a gap between the trade and FBR. He said that unless SMEs are encouraged Pakistan will never achieve its goal towards prosperity and industrialization.

    Zeeshan, Sr. Vice Chairman of Pakistan Tea Association said that the imported tea is not marketed as such but it is blended with other quality tea to make it suitable with respect to its aroma and taste.  

    In the last Chairman thanked the participant for sparing their valuable time for discussion and assured that he will consider the idea to establish a Help Desk at FPCCI. He termed the idea to hold seminars on the subject of Budget Proposals and to improve tax laws.

    Nasir Khan the Acting- President of Federation of Pakistan Chambers of Commerce and Industry strongly urged to consider FPCCI proposals avoid policy of scraping them that will discourage trade bodies to participate in the process of budget formulations.

  • Tax help desk at FPCCI to be set up after consultation: Javed Ghani

    Tax help desk at FPCCI to be set up after consultation: Javed Ghani

    KARACHI: Muhammad Javed Ghani, Chairman, Federal Board of Revenue (FBR) on Monday said that a help desk to resolve tax problems of business community will be established at the apex trade body after consultation with FBR wings.

    He was replying to various issues highlighted by members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during his visit at the Federation House.

    Muhammad Javed Ghani said that he has noted the matters at large given by the members of the trade bodies and said the FBR Help Desk will be established in FPCCI. “However, it requires consultation with various wings of FBR in order to open the desk for productive outcome.”

    He further informed that the reduced human interactions is our policy towards which we are working and even we have improved the recent refunds in less period than it was earlier, which nearly is 70 to 80 percent more than the preceding period.

    He also said that frequent and purposeful interaction with FPCCI is being recognized to be a good move in the objective development of the economy of the country.

    Mian Nasser Hyatt Magoo, President, FPCCI said that it is high time to have paradigm shift in the tax structure to induce investment, promote production and grow economy instead of present revenucracy which remains the focus of FBR.

    He said that constitutional and lawful position given to FPCCI through Act of parliament to represent the private sector of trade, industry and services which has been diluted by FBR through marginalized interaction with apex body.

    He added that hardly any response is given by FBR against matters of members of trade bodies referred to FBR.

    He further stated that the revenue generating agents are being ignored by FBR, which is against the obligation which it owns.

    President FPCCI said that instead of negotiating with institutional representatives of FPCCI, FBR is attending Para shooters who have no locus standii to represent private sector stakeholders.

    He said that FBR should not accord market practicing tax lawyers and tax consultants to represent FPCCI in the FBR various committees.

    Mian Nasser Hyatt Maggo, President FPCCI said that FBR must come back to its past position since decade to negotiate trade, industry and business matters with/through apex body.

    The FPCCI collects fiscal improvement proposals from all the members’ bodies of trade and industry and CCIs to consider the paradigm changes in the present taxation for promoting economy with incremental tax revenue on sustainable basis.

    The apex body and its working on financial and other issues, if are taken up seriously with higher percentage of acceptance with higher level of seriousness of FBR would be a possible solution to make the budget which conduct business in harmony instead of amongst present conflicts and contradiction.

    The attention of the FBR was invited towards present leverage to groups other than FPCCI, which is against the lawful representation which FPCCI enjoys.

    It was said that the SMEs being said to be backbone of economy is being practically ignored and the persons of powerful and in-person connected groups have replaced the representation in decision making at FBR level.

    The members from different trade bodies invited attention of FBR towards CNIC condition on sale which is counterproductive to required sales tax collection as well as impede the industrial production and markets sales.

    Nowhere in the world CNIC or identity is asked from buyers, Pakistan is the only example set by FBR causing problems in business, in specific promoting the agitations on street by the agents of sales of produce, the conducting of small business be settled in peace by removing by removing CNIC condition for buyers.

    The participants invited the attention of Chairman FBR that still the entry of raw materials in part II of 12th schedule of Section 148 of ITO has not been facilitated, which is in the exclusive domain of FBR to resolve.

    The attention was also invited towards glaring example of not  entering raw materials and sub-component imported by vendors under SRO 655 but on the contrary all the component imported by assemblers have been assigned part II of the 12th Schedule of Section 148.

    This high handedness that weaker and SMEs segment not being well connected in the FBR committees are not being accommodated for otherwise on high reasonable ground.

    Other manufacturers also claimed continued ignorance of their requests pending with FBR with zero response.

    Tax structure on import of tea requiring rationalization was also put to the notice of Chairman FBR. Notices have become multiplied after the split of IRS commissionrates from earlier single unit to changed multiple units has eroded the concept of facilitation through One-Window.

    The same showcase notice is now originating from various windows opened in IRS.  The attention of Chairman FBR was also invited by the FPCCI towards the requirement of independence of tax judicial system, which presently negates the constitution and is pending since long for implementation in order to be constitutional compliant.

  • SBP urged to extend refinance scheme for salary payments

    SBP urged to extend refinance scheme for salary payments

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the central bank to extend the refinance scheme which was introduced for businesses in order to reduce the adverse impact of coronavirus pandemic.

    The FPCCI said that the State Bank of Pakistan (SBP) should extend the refinance scheme by one year for payment of wages and salaries, launched to support employees and prevent layoffs due to the COVID-19 outbreak in Pakistan.

    FPCCI President Mian Nasser Hyatt Maggo appreciated the initiative of SBP; introducing schemes like salary payments, deferred loans, introduction of temporary economic refinance facilities etc. to resolve the cash flow problems of businessmen and industrialists.

    He added that these schemes helped many industrial and service oriented sectors to retain employees during the Corona pandemic period. Under this scheme, SBP has released Rs. 238 billion to the private sector.

    While commenting on the refinance scheme for payment of wages and salaries, the FPCCI chief said that the aim of this scheme is to prevent layoff by financing wages and salaries of employees (permanent, contractual, daily wagers as well as outsourced) for all kind of businesses except for the government entities, public sector enterprises, autonomous bodies and deposit taking financial institutions.

    Since the companies that availed this credit facility through banks have not been recovered from the devastating economic impact of COVID-19, it would be advisable if SBP extend this scheme for more one year.

  • FPCCI laments FBR’s non-serious behavior in taxpayers’ facilitation

    FPCCI laments FBR’s non-serious behavior in taxpayers’ facilitation

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the Federal Board of Revenue (FBR) for its lack of responsiveness in addressing taxpayers’ concerns.

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