Taxpayers won’t be harassed: FBR

LCCI President Shahzad Ali Malik said the people are not willing to come into the tax net due to undue harassment by tax officials. — File Photo

LAHORE: Member FBR (Inland Revenue) Khawar Khurshid on Saturday claimed 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.
Speaking to members of the Lahore Chamber of Commerce and Industry, he said he would hold 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 Member said that SRO 283 is actually a major revamping 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.
He also said refund system would also be expedited so that the businessmen could be able to do their businesses with maximum ease. LCCI President Shahzad Ali Malik said the people are not willing to come into the tax net due to undue harassment by tax officials.
He said no arrest or FIR be registered against a taxpayer without a show-cause and the local chamber be taken into confidence. 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.
The LCCI President also raised the issue of withdrawal of Sales Tax exemption given vide SRO 549 on various items and especially on plant and machinery and their parts. He said that the decision would hurt industrialization besides disturbing a number of sectors and suppliers of various goods.
Shahzad Ali Malik proposed uniform rate of 12 per cent GST on all products instead of various rates like 17, 22 and 26 per cent currently being levied. The LCCI President 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 1pc of turnover as minimum tax is very high, especially for distributors and commission agents who do not even earn profit of 1pc on turnover.
The government has introduced Electronic System for the refund of Sales Tax and the same be extended for Income Tax also.
It is also proposed that 2 per cent CVT on sale/purchase of all properties should be reduced to 0 per cent for land purchased for industrial usage.
The LCCI President also recommend that the omitted sub sections 2, 3 and 4 from section 148 of Income Tax Ordinance 2001 should be restored. He said that the LCCI has the concern that why tax is only collected from big cities of Pakistan while small cities and interior areas of provinces are not properly taxed.
The whole country, including the agriculture sector, should contribute towards revenue generation.