PIAF voices concerns over complicated tax collection procedures | Pakistan Today

PIAF voices concerns over complicated tax collection procedures

The Federal Board of Revenue (FBR) would have to revisit its policies to broaden tax net as discourteous attitude of tax officials is discouraging new investments and new businesses. These views were expressed by PIAF-Founders Alliance leaders including Iftikhar Ali Malik, Mohammad Ali Mian, Sh. Mohammad Asif, Sheikh Mohammad Arshad and Sohail Lashari while addressing the the businessmen during their visit to Anarkali here on Saturday. The Alliance leaders took a strong exception to the Federal Board of Revenue for introducing unrealistic and unjustified amendments to be incorporated in Sales Tax and Federal Excise Duty Return Forms. They said that the business community has strong apprehensions that the proposed amendments will have devastating effect on the businesses in Pakistan. They said that the proposed return requires to feed details of each and every sale or purchase transaction at the time of online submission of return and it will almost be impossible to provide details of each and every transaction online. Secondly it will increase the cost of compliance for the tax payers who are already facing the brunt of sheer price hike, economic recession and poor security situation in the country. The Alliance leaders said that the proposed return also requires that NTN or CNIC number of each and every purchaser or seller should be provided with the return. They said that given the literacy rate in the country and lack of compliance culture in general masses it will be very difficult to obtain such personal details from the buyers or sellers of the goods. Furthermore, there is another requirement to provide summary of stock on monthly basis. This is also not practically possible. They said that these and many other proposed changes in the tax returns will strangle the already crisis-hit businessmen in the country. “We feel that the tax department is shifting its burden of monitoring and tracking of the tax system on business community which is unjust and unethical. We urge the Government to make simple and easy procedures for increasing revenue collection, as people do not want to join the tax net due to the complex taxation system. The PIAF-Founders Alliance leaders urged the Federal Finance Minister Dr Abdul Hafeez Sheikh to help withdraw the proposed amendments.

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