KARACHI: Business community has demanded Prime Minister Imran Khan to withdraw the decision to increase in power tariff hike and shutting down the captive power plants because such decision would sabotage efforts of the government to enhance the exports.
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KCCI, Jazz sign deal for 35 percent to businessmen
In a significant move to benefit the local business community, the Karachi Chamber of Commerce & Industry (KCCI) and Jazz, Pakistan’s leading 4G operator and top internet and broadband service provider, have announced the signing of a Memorandum of Understanding (MoU). The agreement, formalized on Saturday, aims to provide substantial discounts on Jazz’s services to KCCI members.
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KCCI demands immediate release of income tax refunds
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged the Federal Board of Revenue (FBR) to immediately release pending income tax refund claims of small traders, shopkeepers and the SMEs.
The claims of around Rs50,000 to Rs100,0000, whose assessment has been completed should be released on top priority, Chairman Businessmen Group (BMG) and Former President KCCI said in a statement on Tuesday.
“Blocking such refunds oppresses small businesses which continue to face serious cashflow problems. We have no idea how long the COVID-19 pandemic would last and it is a well-known fact that almost every household is a victim of this pandemic therefore, the government will have to provide relief as it is totally uncertain where the businesses will land up in the days to come”, he added while speaking at a meeting of Small Traders held at KCCI.
The meeting was also attended by General Secretary BMG AQ Khalil, President KCCI M. Shariq Vohra, Senior Vice President KCCI M. Saqib Goodluck, Vice President KCCI Shamsul Islam Khan, Chairman of KCCI’s Special Committee for Small Traders Majeed Memon, Former Senior Vice Presidents Javed Bilwani and Muhammad Ibrahim Kasumbi, Former Vice President Talat Mehmood and KCCI Managing Committee Members along with representatives of several commercial markets from all over Karachi.
Chairman BMG stressed that the government will have to bring in major changes in the taxation system and it also needs to devise effective mechanism to minimize the hardships of small traders as although big businesses may survive but the small ones need support as they have no access to financing facilities and have also lost all their savings while battling with the situation triggered by the pandemic. “SMEs and shopkeepers are the worst sufferers of the COVID-19 pandemic who must not be undermined and given relief.”
He also stressed the need to resolve CNIC issue which was creating a lot of problems for the already perturbed businessmen who were compelled to run their businesses with limited timings and were strictly advised to comply with all the SOPs for containing COVID-19 pandemic which has resulted in creating a troublesome situation for small traders by raising the costs and lowering the earnings.
In response to concerns expressed over the imposition of municipal tax, he said that President KCCI has already taken up the municipal tax issue and was strictly pursuing the same so that the grievances faced by small traders could be minimized. Moreover, the Karachi Chamber was also closely monitoring the relocation of displaced shopkeepers whose premises were razed during the anti-encroachment drive. “These shopkeepers must be provided adequate alternate place for business and we are seriously working on it”, he assured.
Chairman BMG said the problems confronted by small traders will always be given top priority by the leadership of Businessmen Group and sitting office bearers of the Karachi Chamber who would keep on raising a strong voice and make all out efforts to get the issues resolved.
Zubair Motiwala, while recalling his journey with Late Siraj Kassam Teli, said that the vacuum created after the sad demise of late Siraj Teli cannot be filled by anyone but he along with all Vice Chairmen BMG and General Secretary BMG would try their level best to come up to the expectations of the entire business & industrial community, particularly the small traders who play the role of backbone in the economy. “We always spoke vocally about your issues and would continue to do so in future as well with same zeal and enthusiasm. KCCI would move forward hands-in-hands and its doors will always remain open for small traders while the policies introduced by Late Siraj Teli will remain intact and any inevitable change in these policies would only take place after consultation.”
Speaking on the occasion, President KCCI M. Shariq Vohra said that the small traders were the assets of KCCI and the Chamber fully realizes their significance. KCCI’s role is to facilitate and support the business community in dealing with numerous government related matters and pave way for the progress and prosperity of small traders. “This is our job and we will remain unshakable until numerous issues are amicably resolved”, he added.
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Budget 2021/2022 to focus on easing tax burden: Member IR
Karachi: The upcoming federal budget will ease the burden on the industrial sector to reduce the cost of doing business to facilitate industrial and exporters, Dr. Muhammad Ashfaq, Member Inland Revenue (Operations), Federal Board of Revenue (FBR), said on Friday.
The Member was addressing the members of Karachi Chamber of Commerce and Industry (KCCI) during his four day visit to the city.
The Member said that the FBR was working on a policy to reduce the cost of doing business.
He said that it was encouraging that export orders were increasing. Further, a report of the State Bank of Pakistan (SBP) pointed out a reduction in the cost of doing business.
“The budget 2021/2022 will focus on reducing the cost of production. Further, the priority will be easing the tax burden on the industrial sector,” the Member added.
FBR receives numerous budget suggestions every year, he said, adding that the KCCI should send essential proposals.
The Member said that the condition of CNIC was part of the statute. He also said that audit was part of the taxation system.
He said that the FBR would introduce a new tax policy in the next three months. The Member said that refunds would be paid when claimed.
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President Alvi assures business community of resolving gas shortage
KARACHI: President of Pakistan Dr. Arif Alvi on Saturday assured business community of resolving issue of gas shortage on priority basis.
In response to deep concerns expressed by President Karachi Chamber of Commerce Industry (KCCI) M. Shariq Vohra on serious gas crises being suffered by Karachi, President Dr. Arif Alvi assured to take up this matter with relevant ministers and update the business community within a couple of days on what exactly were the causes for gas shortages and what strategies were being devised to deal with the situation, according to a statement issued by the KCCI.
The assurance was given at a meeting held here at Governor House on Saturday in which President KCCI Shariq Vohra informed President Dr. Alvi that the ongoing gas crises in Karachi has become a very serious issue that needs to be probed because at a time when the exports were picking up, some elements somewhere in the system abruptly intervened and created gas shortage which has resulted in closure of many factories.
He feared that if the gas crises go on like this, it would become difficult not only for the exporters to dispatch their shipments on time but also the general industries will not be able ensure smooth supply goods in the local markets.
He said that the hardships being faced by the business & industrial community of Karachi due to suspension of gas supply needs to be given special attention and promptly resolved otherwise, the situation would have a serious impact on the industrial performance and the economy, besides triggering massive unemployment and poverty.
Appreciating President Alvi’s efforts being made for the betterment differently abled persons in the society who deserve access to employment, President KCCI assured that the Karachi Chamber fully supports President Alvi’s initiative and has started working on this project.
In this regard, relevant information has already been posted on KCCI’s website while emails and letters have also been sent to KCCI members and a meeting has also been convened in the month of January to discuss the possibilities of employing maximum number of disabled people in various factories and industrial units.
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Tax Return Filing: KCCI urges Prime Minister to facilitate taxpayers
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) – the largest chamber in the country – has requested the prime minister to grant extension in the last date for filing return of income up to January 31, 2021.
KCCI in this regard sent a letter to Prime Minister Imran Khan on Monday and requested to extend the last date for filing income tax return.
It is important to note that the business community is approaching the executive of the country after the Federal Board of Revenue (FBR) refused to facilitate taxpayers to comply with mandatory requirement.
KCCI president Shariq Vohra has requested the government to extend the last date for filing Income Tax returns up to January 31, 2021 as many taxpayers have not been able to file their returns on time due to COVID-19 pandemic.
President KCCI has written a letter to Prime Minister Imran Khan in which it has been pointed out that the entire nation including taxpayers were hard hit by the first wave of Covid-19 and now second wave has gripped masses including the taxpayers particularly and tax practitioners which is a serious life threat for everyone.
Hence, the Federal Board of Revenue (FBR) must be directed to extend the last date for filing income tax return up to January 31, 2021 which would be widely appreciated by the business community, he added.
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KCCI urges shopkeepers to strictly ensure coronavirus SOPs
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged shopkeepers to ensure strict compliance of SOPs and business timings to prevent spread of coronavirus.
A statement issued on Monday said that KCCI president M. Shariq Vohra, after listening to the reservations raised by a delegation from All City Tajir Ittehad (ACTI), assured that KCCI would try its level best to make sure that no injustice is done to any shopkeeper even if the government opts another lockdown or smart lockdown in any market of Karachi to contain further spread of COVID-19 pandemic.
“However, the shopkeepers must strictly ensure compliance of SOPs and also the business timings, besides devising effective strategies for social distancing as coronavirus, which is a matter of life and death, has to be taken seriously,” he added.
Exchanging views with ACTI delegation which was led by its President Hammad Poonawala, President KCCI said that KCCI was in constant touch with the government and was closely eyeing numerous strategies being adopted to control coronavirus pandemic.
Hence, any issue being faced by small traders/ shopkeepers must be brought to KCCI’s notice so that the same could be immediately taken up with relevant departments and amicably resolved. “KCCI would always advocate those strategies which are devised to not only save precious lives but also ensure minimum losses to business community during the ongoing most difficult and extraordinary situation.”
Senior Vice President KCCI M. Saqib Goodluck, Vice President KCCI Shamsul Islam Khan, Chairman KCCI’s Special Committee for Small Traders Majeed Memon, Chief Police Chamber Liaison Committee Hafeez Aziz, Managing Committee Members, ACTI’s District-wise Presidents and representatives from various commercial markets of Karachi also attended the meeting.
Keeping in view the developing situation and the fears of imposition of another lockdown, President KCCI advised representatives of numerous associations from commercial markets of Karachi to stay calm, improve liaison with KCCI and unite under the Chamber’s platform so that one voice could be raised for getting numerous issues resolved and the likely grievances, if not completely eradicated, could be minimized.
He said, “It is high time that small traders and shopkeepers must change their mindset and start opening their businesses early morning which would certainly minimize the grievances being faced by them at the end of permitted business timings.
“Shops and markets all over the world open early and close down in the evening which must also be adopted here as our religion also teaches us the same.”
Responding to numerous complaints in which shopkeepers complained about harassment by police and customs officials, he advised that any complaint pertaining to harassment by customs officials must immediately be brought to KCCI’s notice so that the same could be taken up at the higher level.
“The higher authorities are usually unaware of such wrongdoings being done by the officers at lower level as it has been observed that all such complaints are instantly resolved when brought to the notice of higher officials.”
“The Karachi Chamber would invite IG Sindh soon so that the harassment-related problems being suffered by small traders could be resolved”, he assured.
President KCCI advised small traders to become KCCI members which was the most vibrant platform for resolving all types of issues including the law & order, customs and taxation related issues as KCCI’s Subcommittees have been maintaining close liaison with all the departments which helps in swift resolution of relevant issues.
Speaking on the occasion, President ACTI Hammad Poonawala appreciated KCCI for always promptly taking up the issues of small traders and shopkeepers under the supervision of Chairman BMG Siraj Kassam Teli.
He pointed out that shopkeepers were nowadays fearing another lockdown or smart lockdown which, if imposed, would prove completely destructive for small businesses. “Hence, KCCI must play the lead role in convincing the government to refrain from imposing another lockdown and we will ensure strict compliance of all SOPs. In this regard, a committee should be formed by KCCI to look into the problems being suffered by small traders who have been facing a lot of hardships every day because of harassment and demand for Bhatta.”
ACTI delegation also expressed deep concern over dilapidated condition of roads in Shershah market and other important markets of Karachi which were terribly affecting trade and commercial activities. Although assurances have been given from time to time but no development work has been initiated so far and the roads continues to worsen day by day.
They further complained that in order to demand bribes, policemen, traffic police officers and customs officials intercept their legal consignments with an excuse to check presence of any illicit product. Even if all the legal documents are presented and the consignment is not carrying any banned item, they do not release it until the demand for bribe is fulfilled. To deal with this serious issue, KCCI was requested to invite IG so that the business community could record their protest and formally request strictest action against such corrupt practices.
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Video surveillance solution to monitoring without human intervention: FBR
KARACHI: Dr. Muhammad Ashfaq, Member Inland Revneue (Operations), Federal Board of Revenue (FBR) on Saturday said video surveillance is solution for monitoring of production without human intervention.
He was addressing the members of Karachi Chamber of Commerce and Industry (KCCI). He said that although the chamber had criticized the implementation of video surveillance. But there is no other solution for monitoring, he added.
He said that industries had shown intention for video analytics. He said that the sugar industry had serious production issues. He further said that the world had adopted technology. The FBR is also adopting advanced technology and the industry should accept it, he added.
The Member said that FBR was the only implementing agency and the laws were made in the Parliament.
Dr. Ashfaq said that the FBR had released refunds to the tune of Rs250 billion during the past six months.
He said that the country needs better public finance. Therefore, the FBR was focusing on increasing the tax net. The broadening of the tax base would also reduce burden on the existing taxpayers, he added.
On the occasion, Siraj Kassem Teli, Chairman, Businessmen Group (BMG) said that an amount of around Rs1830 billion was stuck up in litigation. He suggested that these cases should be resolved on priority basis.
He said that many cases were framed against taxpayers only to meet tax collection targets.
He offered business community support in broadening the tax base.
KCCI President Shariq Vohra said that the FBR should focus on revenue collection instead harassing the taxpayers.
He said that the FBR was taking help from SROs to generate additional revenue. The notifications and SROs are creating difficulties for the business community as well as for tax machinery.
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Karachi Chamber resents FBR’s decision to install surveillance cameras
The Karachi Chamber of Commerce and Industry (KCCI) has expressed strong discontent over the recent decision by Federal Board of Revenue (FBR) to monitor production activities through cameras directly connected to the main tax database.
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Karachi Chamber disagrees with FBR tax collection analysis
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed disagreement with the analysis released by the Federal Board of Revenue (FBR) regarding tax collection by cities and markets.
Agha Shahab Ahmed Khan President KCCI in a statement on Tuesday expressed total mistrust over the statistical figures recently disclosed by the FBR in its Tax Directory Analysis 2018.
He said that FBR recently released an analysis of Tax Directory 2018 based on income tax, in which it made some claims which were based on partial information creating a wrong perception about the income tax collection from different cities while some important information was skipped by which a reader could have verified the data.
President KCCI noted that under this report, Karachi’s income tax collection was reported to be Rs209 billion while district-wise it revealed that Karachi contributed Rs186.3 billion (Karachi Central added Rs9.06 billion; Karachi East: Rs34.09 billion; Karachi South: Rs114.23 billion, and Karachi West contributed Rs28.89 billion) which clearly indicates a discrepancy of Rs23 billion. It was unclear whether Karachi’s share was Rs209 billion in total or the district wise collection was to be added to it.
“This mismatch in income tax collection figures has raised serious doubts amongst business circles who are terming it as yet another conspiracy against Karachi.”
Likewise, he pointed out that the province-wise share was only revealed in percentage terms and the total value was not disclosed anywhere in the document to authenticate the claims.
Even while disclosing the income tax collection from major markets, many important markets including the DHA’s Gold Mark & Khadda Market and other important markets of Malir, Korangi, Banaras and Bahria Town etc. were not included in the data which gave a wrong impression that the tax collection from Karachi is low in comparison of other cities.
President KCCI further stated that the selected market data of the cities constituted just 25.7 percent (413,859 filers out of 1,606,424 non-salaried individuals and AOP filers), making it an incorrect estimate of the size and share of any city. President KCCI added that the data analysis given by FBR is just a number game and it is an attempt to undermine the share of Karachi.
According to the said document, the income tax collection of Rs209 billion from Karachi is very close to Rs204 billion collection from Islamabad which is impossible keeping in view the size, population and the immense industrial & economic activities in Karachi.
“We totally disagree to FBR’s analysis as Karachi is a port city where most of the Head Offices of multinational companies, banks, DFIs and insurance companies etc. are based while the highest number of institutions, hundreds of commercial markets, shopping malls and plazas etc. are also present in this city, making it the country’s leading industrial and commercial hub.
How could Islamabad with a population of just 1 million and negligible industrial activity compete with Karachi which holds a whopping population of around 20 million that makes it one of the largest cities of the world with seven industrial zones hosting thousands of industrial units?
He said: “Such pitiful attempts had been made in the past as well which were widely protested and completely rejected by KCCI and it has been proven from time to time that Karachi contributes the highest revenue of around 65 percent revenue to the national exchequer which has also admitted by the decision makers like Federal Minister Asad Umer and many others.
Karachi has always been the leading contributor of revenue to the national exchequer, hence we fear that FBR’s figures have been finalized cunningly through statistical juggling and it is a conspiracy to tone down the significance of Karachi which will not be accepted and widely protested at all available platforms”, Agha Shahab warned.
He requested Prime Minister Imran Khan and his entire team of economic experts to look into this serious matter and grill the FBR for releasing such an irresponsible analysis, besides directing the revenue collection authority to immediately withdraw the fabricated analysis and issue a revised version which must carry comprehensive and accurate fact and figures about Karachi.