Business associations plead for tax cuts

Industrial and trade associations have urged the Federal Finance Minister to bring down General Sales Tax (GST) to 12 percent so that more businessmen could be brought in the tax net.
Lahore Township Industries Association Chairman Haroon Shafiq Chaudhry, Ferozepur Road Insutrial Association President Shahid Baig and Pakistan Autoparts Manufacturers and Exporters Association Chairman Tahir Javed Malik in a joint press statement demanded the federal government cut the GST rate and bring all unregulated sectors into the tax net. Trade body leaders asked the government to restrict the discretionary powers of public servants to better the business environment. They stressed that the business community and private sector were engines of growth and major tax contributors in the country, but the government machinery had failed to provide them a suitable and business friendly environment.
They urged the Federal Board of Revenue (FBR) to immediately withdraw SRO 283(I) 2010 as the business community would not allow officials of Directorate General of Intelligence and Investigation to interfere in their businesses and visit premises of manufacturing units of registered persons. They said that it seemed that the bureaucracy was busy in creating fresh hurdles for commerce instead of introducing a relief package while ignoring the mounting challenges being faced by the economy.
It was stressed that empowering officials of Directorate General of Intelligence and Investigation with free access to search businesses and premises of manufacturing units of registered persons for obtaining stocks records, bank statements and other business-related data was tantamount to create a climate of harassment and no business could prosper in such circumstances.
They said that the Federal Board of Revenue should have consulted the chambers and trade bodies in the country before introducing SRO 283(I) 2010 that was bound to put corrupt practices into currency. They said that the business community was unable to understand the wisdom behind the introduction of SRO 283(I) 2010 when the Federal Board of Revenue was meeting preset targets of revenue collection.
They questioned how the government would boost the tax base when the sword of fear hangs over the heads of businessmen. “How the government would restore the confidence of businessmen when the intelligence officials would be raiding their business places.”
They said that it seemed that the SRO had been issued in connivance with corrupt elements in the bureaucracy and to tarnish the image of the government. “It’s a conspiracy against present regime and the conspirators must be identified.”
The Federal Board of Revenue enhanced the powers of Directorate General Intelligence and Investigation through amendment in SRO 56(I) 2010 through SRO 283 (I) 2010. Now, officials of the directorate enjoy the authority to inspect the goods, stocks, records, data, documents, correspondence, accounts, utility bills and information regarding funds or assets of any business unit. The registered person or his agent would be bound to answer any question or furnish such information as may be requested by the Director General, Director, Deputy Director and Assistant Director of the Directorate General of Intelligence and Investigation.