In order to maximize revenue near the end of the current fiscal year, the Directorate of Intelligence & Investigation of the Federal Board of Revenue has again resorted to picking up individuals, creating the atmosphere of unnecessary confusion and harassment in industry circles.
This was stated in a letter written by PAAPAM Chairman Syed Nabeel Hashmi to FBR Chairman Mumtaz Haider Rizvi, urging him to restore SRO 648 (I) 2011 which allowed amnesty on penalty and surcharges, besides applying it to those companies, which are not complying with required conditions.
He said that the Association does not support any illegal activities, fully endorsing recovery drive initiated by the tax department. However we feel that it is not prudent or fair to take such drastic and unrealistic actions which lead to shutdown of the tax paying unit.
He maintained that the recommendations of industry would ensure the economy keeps working while the government will get its stuck-up revenue without litigation, hassle and harassment to tax payers.
He said that the manufacturers, who are facing lot of hardships due to prolonged electricity and gas loadshedding, disapprove of the FBR move and will not tolerate any arm-twisting step by the tax department.
He said that almost all the leading economies are being given incentives to expedite economic activities in their respective countries -but in Pakistan, the people who are sitting at the helm of affairs are doing the otherwise—when almost all the businesses are facing a number of internal and external challenges.
Nabeel Hashmi observed in the letter that the auto vending industry is quite conscious of its national obligations but the decision to issue unnecessary notices to them would only vitiate business atmosphere.
He urged the taxpayers and tax collectors be on the same page as both are striving to serve the nation. He said that it would be wiser on the part of the FBR to strengthen its institutional capacity for bringing more people into the tax net instead of squeezing the existing taxpayers.
He said that in order to cultivate the culture of voluntary tax payments, the taxpayers should be facilitated and guided, and instead of imposing harsh penalties, minor mistakes should be rectified.
“Notices without deciding specific criterion in consultation with the industry is not acceptable and discretionary and arbitrary powers of the tax officials in this regard should be curtailed forthwith,” he added. “The anomalies in the sales tax and income tax laws should be removed.” He said that the business community knew well that the government needs revenues to run its affairs and it was willing to pay taxes but the process and laws for collection should be made simple and less burdensome.
PAAPAM recommended the FBR to consider long-term installment plan which would encourage many to settle directly with FBR. It suggested that adjustment of any amount in the form of refunds of Income Tax or Sale Tax may be allowed against this liability. Once the department receives the adjustment or PDCs it must guarantee quashment of FIR against co-operating member companies.
