Advisor to Prime Minister on Revenue Haroon Akhtar Khan while discussing Karachi Chamber of Commerce & Industry’s (KCCI) budgetary proposals for the fiscal year 2016-17 said that the government and its economic managers were focused on presenting a budget for fiscal 2016-17 with a clear objective to spur economic growth, encourage investment in industries, ensure ease of doing business and broaden the tax base through creation of a business-friendly environment.
Exchanging views with a delegation of KCCI led by Siraj Kassam Teli, former KCCI president and Chairman Businessmen Group, during a meeting held at FBR House in Islamabad, Haroon Akhtar assured that KCCI’s proposals had received serious consideration by the FBR and the ministry of finance which will be incorporated in the budgetary measures.
The KCCI delegation also comprised Vice Chairmen BMG and former pesidents Tahir Khaliq and Haroon Farooki, KCCI President Younus Mohammad Bashir, former senior vice president Mohammad Ibrahim Kasumbi and Chairman GST Sub-Committee of KCCI Shoaib A Faridi. The KCCI delegation and the team of FBR officials discussed KCCI proposals point by point and each side presented its point of view on each proposal to develop a consensus on various measures which must be taken to evolve a growth-oriented and business-friendly budget for the year 2016-17.
Federal Board of Revenue (FBR) Chairman Nisar Mohammad Khan in his remarks appreciated the efforts made by the KCCI to present comprehensive and detailed proposals for the budget 2016-17, incorporating a broader cross-section of trade and industry.
He also assured the KCCI delegation that its proposals were receiving due consideration and importance because it represented the views and feedback of the largest tax-payers body in Pakistan.
The FBR chairman assured that the proposal regarding changes in law were being considered seriously to incorporate it in the proposed legal changes in Sections 8A, 14, 21, 26, 40, 40B & 45B, and those which were about non-implementation of procedures and law, misuse of discretionary powers and misinterpretation of law will be discussed in a separate meeting at the Karachi Chamber after the budget.
Terming it a good news, the FBR chairman informed that Alternate Dispute Resolution Committee (ADRC) was being reintroduced with certain improvements which would certainly bring better results, favouring the trade and industry. He also informed that SRO No 647(I)/2007 dated 27-7-2007 & SRO 1125(I)/2011 and Sales Tax Special Procedure (Withholding) Rules 2007 will also be made more rationalised.
Speaking on the occasion, Siraj Kassam Teli stated that although the issues were discussed but no implementation was seen during the past many years. He highlighted the issues and problems being faced by trade and industry due to the unfettered discretionary powers conferred in the taxation laws including Sales Tax Act 1990, Income Tax Ordinance 2001, Customs Act 1969, Federal Excise Act, SROs, CGOs, rulings, special procedures and large number of administrative changes, making it extremely cumbersome to conduct business.
He emphasised that these powers were generally misused by the field formations and officers of inland revenue to harass the taxpayers, extortion and corruption. These laws had been a major irritant in the way of broadening the tax base due to fear of harassment, he added.
Siraj Teli emphasised that these laws should be deleted or amended in such a manner that these were not abused by the field formations and a parallel accountability be incorporated at both ends.
He reminded the FBR team that a taxation reforms commission was formed two years ago by the government to review the entire taxation regime and remove the irritants, curtail discretionary powers and align the tax regime with the long-term economic goals of Pakistan. All stakeholders were invited to participate in the reform process and after painstaking work for over a year, he added, adding that recommendations of the commission were presented to the government for implementation. However, unfortunately these recommendations seemed to have been ignored while preparing the previous national budget which was incomprehensible, he said. He emphasised that the recommendations of TRC must be incorporated in the forth-coming budget.
