Pkrevenue.com

Tag: KCCI

  • Third party to conduct tax audits: Shaukat Tarin

    Third party to conduct tax audits: Shaukat Tarin

    KARACHI: Finance Minister Shaukat Tarin has announced that tax audits to be done by third party. Further it has been decided to launch universal self assessment scheme (USAS).

    “I want to remove harassment by FBR. Although there are good people at FBR but there are also some troublemakers. Hence, we have agreed upon Universal Tax Self-Assessment and the audits by third party only,” he added while speaking at an online meeting with BMG Leadership and KCCI Office Bearers on Thursday.

    A statement issued by the Karachi Chamber of commerce and Industry (KCCI) on Thursday quoted Shaukat Tarin that if any wrongdoing was found after the audit by third party, it will result in initiation of investigation and punitive action.

    “In this regard, we have created a section to review all the bills, number of deposits and travel history etc. of individuals and if any person is found liable to pay taxes but is a defaulter, such cases will be sent to third-party auditors to prove tax default and if proven, these defaulters will be put behind bars,” Tarin said, adding that laws will be devised to put such persons behind bars responsible for willful default.

    He stated that the government was focused on rationalizing the turnover tax in order to make some sense as it varies in numerous cases.

    The minister also agreed that when three percent penalty was being charged in case of unregistered persons, the CNIC condition should not be there. Hence, the minister directed FBR to look into this matter and stop demanding CNIC.

    “A call center will also be established at FBR in which complaints can be lodged which I will personally review on daily basis to ensure accountability at the FBR,” he added.

    In response to concerns expressed over dilapidated infrastructure of Karachi, Shaukat Tarin informed that a three years package of Rs900 billion has been allocated under PSDP for Karachi which will be finalized by the PM.

    “During discussions on this allocation at a meeting which will be presided over by the Prime Minister, I will definitely raise business community’s concerns and I will be your promoter.”

    He said that the government was trying its best to facilitate the SMEs and, in this regard, the SMEs falling under the bracket of Rs2 million will be provided ‘clean credit’ facility with no security. For this purpose, the government will be providing huge amount of funds to banks at 8 percent which will be given to SMEs at 9 percent while credit insurance will be provided by the government. “It is a matter of grave concerns that out of a total of 6 to 8 million SMEs, only 180,000 SMEs have access to credit, hence efforts will be made to extend credit facility to at least 1 million SMEs in the next two years.”

    He said that FBR will also be directed not to stop refunds of SMEs and small businesses. “We will clear all the backlog of refunds within a few months by issuing Tradeable Bonds so that the businesses could have sufficient amount of liquidity available with them and a smarter mechanism will be introduced to clear refunds within 60 to 90 days.”

    Referring to concerns expressed over Rs58 billion refunds pending under DLTL scheme, Shaukat Tarin termed it as ‘a very good point” and directed FBR expedite the refunds while DLTL should not be collected this year as the FBR already owes huge amount.

    Commenting on a suggestion to treat indenters commission as export proceeds, the Finance Minister said that it was a very good idea to consider indenters’ commission as export proceeds as it has been observed that many indenters prefer to keeping their earnings outside the country but if these earnings were treated as export proceeds, it would encourage them to bring funds to Pakistan.

    He said that reforms were being introduced at the revenue side which will ensure that no harassment takes place and there will be no double taxation. “The IMF has been pushing us to stop all exemptions and impose additional tax of Rs140 billion on existing taxpayers which I denied”, Shaukat Tarin said, “Only blatant exemptions will be dealt otherwise the rest will continue. We are broadening the tax base by making good use of technology and innovation which will neither be coercive nor regressive but will be devised in consultation with the business community.”

    Finance Minister also assured to regularly hold meetings with KCCI at least once in three months so that dialogue on an ongoing basis continues to promptly resolve business community issues while the FBR will be directed to consider and resolve all the technical issues being raised by KCCI.

    Speaking on the occasion, Chairman BMG Zubair Motiwala pointed out that despite the outbreak of COVID-19, Karachi has given 18 percent growth in exports and it overall exports stood at 58 percent therefore, the Federal Government must take Karachi’s robustness into consideration and accordingly give its due share which has unfortunately not been given so far.

    He said that although a subsidy was earmarked for Karachi’s energy needs but as per Ministry of Energy, the earmarked amount exhausts by paying for uniform tariff across the country and no amount is left to give subsidy for gas at 6.5 dollars per MMBtu to the five export-oriented sectors. The subsidy does not account for the Hydel electricity portion which is given to KE as a right of Karachi over Hydel Power. If the same is calculated at the cost of hydel electricity, then this subsidy can automatically be saved and given for the sale of gas at 6.45 per MMBtu to the five export-oriented sectors.

  • Many taxpayers fail to comply with last date for filing sales tax return

    Many taxpayers fail to comply with last date for filing sales tax return

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) on Friday urged the tax authorities to extend the last date for making sales tax payment and filing monthly return for the period of April 2021.

    The KCCI in a statement urged the Federal Board of Revenue (FBR) to extend dates of payment and submission of Sales Tax and Federal Excise Returns for the Tax Period of April 2021 to May 30, 2021 to facilitate taxpayers as many of those had failed to submit their returns before the deadline which ended on May 21, 2021.

    In a statement issued, Chairman Businessmen Group (BMG) and Former President KCCI Zubair Motiwala, while appealing the FBR to extend last date for ST and FE Returns, pointed out that the business community recently underwent prolonged holidays for eight consecutive days while arrival of containers at Karachi Port also suffered delays due to situation triggered by the colossal cargo ship that became stuck on the banks of Egypt’s Suez Canal, blocking traffic through the crucial waterway.

    “Subsequently, the exports of containers which was supposed to be made in the first week of May also delayed with a lapse of at least two weeks which is a big issue for the exporters who are also facing severe liquidity crunch because of the extraordinary situation triggered by the ongoing third wave of COVID-19 pandemic and closure for eight days”, he added.

    President KCCI Shariq Vohra, while referring to his letter sent to Chairman FBR Asim Ahmed, stated that the nominal extension of just three days for filing ST and FE Return was announced earlier by FBR but it was worthless as after observing prolonged holidays, it takes time for many businesses to get back to normalcy. Therefore, many taxpayers were unable to prepare and submit their Sales Tax and Federal Excise Returns for the Month of April 2021 within the announced limited extension of just a few days.

    He further commented that the overall situation was not favorable for trade and industry as everybody was facing severe liquidity crunch nowadays due to very limited business activities hence, the FBR should extend the date of payment and submission of ST and FE Returns up to May 30, 2021.

  • Karachi Chamber demands opening of markets amid alarming corona situation

    Karachi Chamber demands opening of markets amid alarming corona situation

    KARACHI: As the country is facing alarming situation of coronavirus in its third-wave and a strict lockdown has been imposed to prevent spread of the pandemic, the business community is demanding to allow opening of market during last two days of the Eid-ul-Fitr.

    In this connection, Karachi Chamber of Commerce and Industry (KCCI) has appealed the Sindh government to allow shopkeepers and small traders of Karachi to open up businesses during last two days before Eid from Iftar to Sehri so that they could be able to recover some of the grave losses suffered by them due to stiff curbs imposed to contain further spread of COVID-19 pandemic.

    “Keeping in view the not so bad number of COVID-19 cases in Karachi, we believe that there is some room available to allow shopkeepers in Karachi to open up their businesses at least on Wednesday and Thursday from Iftar to Sehri which would be widely welcomed not only by small traders and shopkeepers but also by a large number of Karachiites who will be able to complete their unfinished shopping for Eid festival,” said Chairman Businessmen Group & Former President KCCI Zubair Motiwala.

    Zubair Motiwala pointed out that associations of commercial markets from all over the city have been constantly exerting pressure on KCCI so that the Chamber, being the premier and actual representative of the entire business community, could play its role by convincing the Sindh government to allow businesses to keep on operating during the last two days while the representatives of these commercial markets associations have also assured to fully comply with Standard Operating Procedures (SOPs) during these days.

    “Instead of completely shutting down businesses, the government should allow them to keep on running their businesses from Iftar to Sehri during the last two days before Eid which would obviously fragment the public and discourage overcrowding as all the markets in the city will be simultaneously operational, besides ensuring social distancing all the time, which is one of the key elements required for containing further spread of coronavirus”, he added.

    Keeping in view the overall situation and grievances suffered by small traders and shopkeepers, Chairman BMG hoped that the Sindh government, which has always played the lead role in efficiently rescuing the public from time to time, would provide the desperately needed relief to local businesses this time as well by relaxing the curbs for just two days from Iftar to Sehri so that the businesses could be saved from further disaster. “Keeping in view the COVID statistics and forecasts, if the government feels that the loss of precious lives was unlikely then they should provide relief for two days”, he added.

    President KCCI Shariq Vohra stated that it is high time that the Sindh government, being the peoples’ government, has to come forward to minimize the hardships being faced by the distressed citizens and the business community of Karachi by ordering to lift restrictions on opening up businesses on Wednesday and Thursday from Iftar to Sehri. “Due to harsh curbs imposed in an extraordinary situation, uncertainty prevails and people have become hopeless hence, the Sindh government will have to take steps to deal with the situation by providing relief to Karachiites during the last two days before Eid”, he added.

    Chairman of KCCI’s Special Committee for Small Traders Majeed Memon pointed out that many shopkeepers are already going through terrible crises due to limited business activities since the outbreak of COVID-19 pandemic hence, the government must look into the possibility of providing them relief for just two days before Eid by allowing them to carry on businesses from Iftar to Sehri otherwise many businesses will not be able to survive and wipeout forever. “The situation, if not promptly responded and wisely handled, would lead to intensifying the hardships not only for business community but also for the already ailing economy, besides triggering massive unemployment and poverty which would prove more dangerous than the pandemic”, he added.

  • SBP hailed for allowing opening of banks during Eid Holidays

    SBP hailed for allowing opening of banks during Eid Holidays

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday hailed the State Bank of Pakistan (SBP) for allowing banks to open their branches during Eid holidays to facilitate general public.

    Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Shariq Vohra appreciated the central bank for paying attention to KCCI’s legitimate demand and accordingly deciding to keep those authorized branches of banks operational on May 10th and 11th who are dealing in foreign exchange & trade activities.

    “We are very grateful to the government and SBP for keeping the authorized branches operational on first two days of next week to facilitate trade & industry, particularly the exports during the extended holidays before Eid-ul-Fitr,” said Chairman BMG Zubair Motiwala.

    While welcoming Sindh government’s move to keep all businesses operational on Friday and Saturday from 6am till 6pm, Chairman BMG reiterated KCCI’s demand to allow small traders and shopkeepers to keep their businesses operational throughout the remaining few days of Ramazan ul Mubarak while the business hours have to be redefined from 12am till 12pm instead of existing 6am to 6pm. 

    President KCCI Shariq Vohra said that SBP’s move would certainly give some breathing space to the exporters by enabling them to carry out important banking transactions and dispatch shipments either on 10th or 11th May, 2021. Although the Sindh government has issued holidays notification from May 10th to 15th but this needs to be reissued under Factories Act in which holidays should be categorically mentioned from May 12th to 15th which would help in dealing with confusion amongst many circles.

    He also requested the Sindh government to allow shopkeepers to keep their businesses operational during the remaining days of Ramazan and urged the shopkeepers to ensure strict implementation of Standard Operating Procedures (SOPs) at the commercial markets.

  • Karachi Chamber rejects few-day extension for filing sales tax return

    Karachi Chamber rejects few-day extension for filing sales tax return

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Thursday rejected extension of few days for filing sales tax and federal excise returns and making payments.

    KCCI President Shariq Vohra, while referring to FBR’s Letter dated May 6, 2021, stated that the extension in dates of payment and submission of Sales Tax and Federal Excise Return for the Tax Period of April 2021 up to May 18, 2021 and May 21, 2021 respectively were not enough which have to extended to May 30, 2021 to facilitate taxpayers.

    In a letter sent to Chairman FBR Asim Ahmed, President KCCI pointed out that the nominal extension in such dates for filing Sales Tax and FED Return will create difficulties for taxpayers as it takes time to get back to routine after observing extended holidays of Eid-ul-Fitr which will be starting from 9th May 2021 to 16th May 2021.

    Hence, the business & industrial community may not be able to prepare and submit their Sales Tax and Federal Excise Return for the Month of April 2021 within the announced limited extension of just a few days.

    He opined that the overall situation was not favorable for trade and industries as everybody was facing severe liquidity crunch nowadays due to very limited business activities whereas it appears that the government has announced prolonged holidays with an intention to keep the entire population at homes so that the ongoing third spell of COVID-19 pandemic could be controlled.

    Keeping in view the overall situation, President KCCI requested FBR to extend the date of payment and submission of Sales Tax and Federal Excise Return for April 2021 up to May 30, 2021 in the larger interest of FBR and the Business Community while the relevant notification for extension may also be reissued which would be widely welcomed by the entire business and industrial community of the country.

  • Customs needs to improve performance: Karachi Chamber

    Customs needs to improve performance: Karachi Chamber

    KARACHI: The performance of Pakistan Customs is not at par with expectations of trade and industry. This mismatch between expectations and delivery should be resolved effectively, said Shari Vohra, President, Karachi Chamber of Commerce and Industry (KCCI).

    He said while exchanging views with a delegation of Senior Collectors of 31st Mid-Career Management Course from Directorate General of Training & Research (Customs) who were led by Additional Director Junaid Usman Akram during their visit to Karachi Chamber.

    The meeting was also attended by Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan and KCCI Managing Committee Members.

    Shariq Vohra was of the opinion that the Customs Department has to improve its efficiency as per international standards and must stay abreast with global changes and technological advancements as staying confined to traditional and obsolete practices for clearance of goods would never yield positive results in terms of expediting procedures for clearance of goods.

    “Although Customs Department is a tax collector but it has to be a facilitator as well,” he added.

    He was of the opinion that free dwell time of five days usually expires because of slow pace of Customs Department that causes severe losses to the business community on account of demurrage and detention charges on a daily basis which not only makes the imported goods uncompetitive in the local markets but also affects the exports.

    “At times, many consignments carrying essential raw material for export-oriented industries are also held up by Customs authorities for long which raises the cost of raw material and eventually increases the cost of exportable goods.

    “This is a very serious issue which requires special attention as it makes many Pakistani products uncompetitive in the international markets,” he explained.

    Additional Director Directorate General of Training & Research Junaid Usman Akram, while appreciating KCCI for regularly holding interactions with Customs Officers of Mid-Career Management Course, stated that it was very important to hold frequent interactions between Customs Officials and the business community as such interactions were a perfect source for having access to first-hand knowledge which helps in better understanding the issues and accordingly devising strategies for creating an enabling business environment.

    He said that the Customs Department, despite limited human resource, was sincerely working to facilitate the business community even in extraordinary situations.

    “Despite the outbreak of COVID-19 pandemic and subsequent lockdown last year when employees of most of the organizations starting working from homes, the Customs Department remained fully operational and not a single day leave was taken by any official that clearly shows the sheer commitment and dedication of the entire department,” he added.

    Speaking on the occasion, Senior Vice President KCCI Saqib Goodluck briefed the delegation about the overall operations of Karachi Chamber and how effectively it has been raising voice for resolving issues being faced by the business and industrial community, besides giving the valuable Budget Proposals which were compiled after consultation with all the stakeholders including all industrial town associations and sector-specific trade bodies.

  • FBR urged to abolish withholding tax, minimum tax for commercial importers

    FBR urged to abolish withholding tax, minimum tax for commercial importers

    KARACHI: Federal Board of Revenue (FBR) has been urged to abolish withholding tax and minimum tax for commercial importers in the upcoming budget 2021/2022.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for the upcoming budget said that commercial Importers of raw material pay withholding tax at 2 percent up to 5.5 percent which can only be possible if the gross profit is 30 percent, while the margin is not more than 2 to 3 percent on raw materials sold without value addition or change in form.

    By amendment to Section 148 of Income Tax Ordinance, 2001 through Finance Bill 2018-19, WHT paid on import of raw materials by commercial importers has been converted to minimum tax and the importers have been taken out of fixed tax regime (FTR).

    The chamber said that the concept of WHT is unique to Pakistan’s Tax regime which in fact is tantamount to putting the burden of tax-collection from undocumented entities on the compliant tax payers and avoiding the responsibility to broaden tax-base.

    After acquiring unprecedented powers to access information under Section 56 A and 56 B in Income Tax Ordinance, 2001, FBR and its subordinate departments must take the responsibility to identify non-compliant and undocumented entities/persons instead of laying the onus on existing taxpayers.

    The chamber proposed that concept of minimum tax and withholding tax may be abolished.

    Tax Payers may be allowed to pay certain Fixed Tax or opt for Audit regime and pay taxes in accordance with actual tax liability on Income.

    Furthermore, all Taxes deducted have to be adjustable against actual tax liability.

    Giving rationale, the chamber said that the commercial importers who are a major source of revenue will be able to resume their business and contribute to revenue as well as promotion of SMEs.

  • Jurisdiction of big taxpayers given to CTO

    Jurisdiction of big taxpayers given to CTO

    KARACHI: Federal Board of Revenue (FBR) has transferred jurisdiction of big volume taxpayers to Corporate Tax Office (CTO) instead of dedicated tax offices for big taxpayers i.e. Large Taxpayers Office (LTO).

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2021/2022 pointed out that the FBR had created new LTOs which deal with taxpayers having a turnover of Rs.1 billion or more.

    However, FBR has changed the taxpayer’s jurisdictions abruptly without any intimation.

    Jurisdiction of some tax payers has been transferred from LTO to CTO despite having a turnover of Rs.7 to Rs8 billion which has created a great deal of confusion and hardship. Difficulties in transfer of soft data/hard copies of tax records from one jurisdiction to other has created problem in processing of refunds and other issues.

    The chamber urged the FBR to correctly and transparently implement the said policy.

    Transfer of Jurisdiction should be streamlined and made easier with prior intimation and valid reasoning.

    Taxpayer data will be available for longer period to be checked by himself at one place and it will also facilitate taxpayers.

  • Commissioner Appeals should be empowered to grant stay up to 90 days

    Commissioner Appeals should be empowered to grant stay up to 90 days

    KARACHI: Federal Board of Revenue (FBR) has been urged to authorized commissioner appeals to grant stay up to 90 days instead existing 15 days.

    Karachi Chamber of Commerce and Industry (KCCI) in its proposals for budget 2021/2022 said that currently Commissioner (Appeals) grants stay for 15 days only and after expiry of the stay the taxpayer has to file repeated extensions until the decision of the Appeals. Relevant Sections are: ITO 2001 Section 128 (1A)

    The chamber said that this is a cumbersome process which is quite unnecessary and causes undue hardship.

    The KCCI proposed that amendment should be made to Section 128 (1A) of the ITO 2001, to increase the stay duration to Ninety (90) days instead of 15, and extend order timeline to 180 days instead of the existing 30 days.

    This will eliminate unnecessary documentation and save time of both the taxpayer and the Commissioner (Appeals).

  • KCCI demands restoration of normal business timings

    KCCI demands restoration of normal business timings

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday demanded the government of Sindh to restore business timings for markets during the holy month of Ramazan ul Mubarak as restriction imposed on timings may result in disastrous for traders and shopkeepers.

    Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce and Industry (KCCI) Shariq Vohra, while expressing sheer dismay over Sindh Govt’s decision to allow limited business timings from Sheri to 6:00PM and complete closure of businesses on Saturdays and Sundays, urged to revoke the relevant notification without further loss of time and allow all types of businesses to operate at full capacity throughout Ramazan otherwise the people, instead of dying due to diseases caused by coronavirus, would die themselves because of poverty, unemployment, mental stress, hunger or starvation.

    In a statement issued, Chairman BMG and President KCCI stated that they have been urging the Sindh Government through letters to avoid imposing such unpopular decisions at a very crucial time as this was the peak season and if businesses are disallowed to carry out activities for two consecutive days and compelled to observe limited business timings during the remaining working days, it will prove to be disastrous for them throughout next year.

    “We have sent letters to Chief Minister Sindh, Local Govt. Minister, Chief Secretary and Commissioner Karachi and also dropped messages from time to time but haven’t received any response which is a bit disappointing as we were not expecting this kind of response from Sindh Govt. which has always responded to KCCI’s pleas”, said Zubair Motiwala Chairman BMG, “Closure of businesses for two consecutive days and allowing them to operate with limited timings during the remaining days would result in bankrupting many businesses, trigger massive unemployment and chaos.”

    Referring to large number of complaints being received from the shopkeepers of almost all the commercial markets of Karachi who were constantly seeking KCCI’s assistance, Chairman BMG stressed that the government has to come up with some other feasible solution which could save everyone from the pandemic and also ensure zero damage to the poor shopkeepers and small traders who cannot afford any further shocks. “In this regard, the business and industrial community is ready to fully comply with all the SOPs but closure would bring much more difficulties and miseries than opening and controlling the pandemic through the implementation of SOPs”, he added.

    He further said, “These are challenging times and every member of the civil society is facing problems due to COVID crises. Perhaps, it is time when the government should think about extending monetary help to citizens especially the small shopkeepers who are now in net debt position and even paying rents to owners of their business premises has really become difficult.”

    “It is the finding of our Research Department that many shopkeepers have already gone bankrupt and they are running their businesses in anticipation that this season of Ramazan will pull them out of crises. Hence, it is imperative that government should understand the real situation faced by the trading community”, he added.

    “Yes! it is necessary to implement but these SOPs, as the trading argues, are not seen on roads, mosques, public places and big shopping malls. In such a situation, how Karachiites will be saved from COVID if they are closed for two days”, Zubair Motiwala questioned.

    Chairman BMG, therefore, stressed that the notification must be immediately withdrawn while the administration should be effectively utilized for strict implementation of the Standard Operating Procedures (SOPs). “If the administration was able to strictly get the lockdown enforced last year, then why it is not being used for strict implementation of SOPs”, he asked, adding that the Sindh government will have to alleviate the predicament of businessmen instead of aggravating them.

    President KCCI Shariq Vohra also cautioned that shutting down shops for two days and limited business hours would lead to creating a chaotic situation as the people would find no other option but to come out on streets to protest due to rising unemployment and poverty.

    Keeping in view the overall situation and grievances suffered by the business and industrial community, President KCCI hoped that the Sindh government would look into this serious issue and take steps to save businesses and the economy from further disaster.

    On behalf of the entire business community of Karachi particularly the small traders and shopkeepers, Chairman BMG and President KCCI appealed the government to review the decision to shut down all types of commercial/ business activities for two consecutive days a week and allowing limited business hours till 6:00PM which is tantamount to mass killing of the already perturbed small traders and shopkeepers who are in deep crises and struggling really hard to somehow keep their businesses alive.