FBR Member (Inland Revenue) Khawar Khurshid Butt has said that no genuine tax payer would be harassed and a committee comprising members of FBR and LCCI would be formed to sort out all tax-related issues. Khawar was addressing members of the Lahore Chamber of Commerce and Industry on Saturday. LCCI President Shahzad Ali Malik, former Presidents Sheikh Mohammad Asif, Mian Anjum Nisar, Shahid Hassan Sheikh, former Senior Vice President Sohail Lashari, former Vice President Aftab Ahmad Vohra and former EC Member Shahzad Azam Khan also spoke on the occasion.
While, the FBR member was duly assisted by Chief Commissioner Ansar Javed, Chief Commissioner Mustafa Ashraf and LTU Chief Commissioner Khalid Aziz Banth. Khawar Khurshid Butt said that he would hold a meeting with the head of the FBR Intelligence Unit over the issue of harassment and facilitation to the tax payers would be ensured at every cost. The FBR member said that SRO 283 is actually a major revamp of zero-rated regime and certain anomalies are coming up due to this policy shift. However, he assured that all issues would be resolved with the consultation of concerned stakeholders.
Khawar Khurshid Butt stated that refund system would also be expedited so that businessmen are able to conduct work with ease.
Speaking on the occasion, the LCCI President Shahzad Ali Malik said the people are not willing to come into the tax net due to undue harassment by tax officials; therefore corrective measures are badly needed to encourage the new tax payers. He said that no arrest or FIR should be registered against a taxpayer, without giving him a show-cause notice and the local chamber should also be taken into confidence during this process or while investigating any tax fraud. Moreover, the adjudication officer should not be below the rank of an Additional Commissioner.
The LCCI president said that refund system of taxes should be improved to encourage businessmen get registered with the tax department.
The LCCI President also raised the issue of withdrawal of sales tax exemption given vide SRO 549 on various items, especially on plant and machinery. He said that the decision would hurt industrialisation, besides disturbing a number of sectors and suppliers of various goods.
Shahzad Ali Malik proposed a uniform rate of GST i.e. 12 percent on all products instead of various rates like 17, 22 and 26 percent, currently levied in the country.
The LCCI president said that punishing the buyer was not justified in case of sales tax default by the supplier. It is recommended that if payment is made by the buyer through cross cheque, he should not be held liable for any such default. He also urged the FBR to settle down concrete audit parameters in consultation with the business community. The scope and rate of turnover tax, under section 113 of Income Tax Ordinance, 2001 has been increased. The rate of one percent of turnover as minimum tax is very high, especially for distributors and commission agents who do not even earn a profit of one percent on turnover.
The government has introduced an electronic system for the refund of sales tax and the same should be extended for income tax. It is also proposed that two percent CVT on sale/purchase of all properties should be reduced to zero for land purchased for industrial usage.
