KARACHI: The Federal Board of Revenue (FBR) on Friday vowed to levy excessive taxes and reduce compliance costs to help businesses reduce production costs.
Ashraf Ahmed, Member Inland Revenue (Operations) FBR said that whatever the Apex Tax Authority receives, it has a share of 30 to 35 per cent in the form of sales, income and holding tax. Revenue is received.
“It is in the FBR’s interest to make the business successful and reduce costs,” Ahmed said during a meeting with officials from the Ahmed Chamber of Commerce and Industry (KCCI).
The tax official said the FBR receives thousands of budget proposals each year, but due to limited time, it is difficult for them to read them.
“Trade associations should immediately take their budget proposals to the technical committee constituted by the finance minister, improve them and after diligence send only workable recommendations to the FBR,” he said. “We give you a refund and you don’t have to go to the banks to borrow working capital, which adds to the cost.”
Ahmed said many tariffs have been withheld but if the FBR succeeds in recovering the 20 per cent amount involved in the litigation, the tariff targets will be achieved and the country will not have to go to creditors.
KCCI President Sharq Vohra said that billions of rupees have been lost due to lawsuits for the last several years and there is no prospect of recovery, while these lawsuits have led to violence against taxpayers. It is targeted and it is a burden on FBR resources. “
Therefore, the tax collection authority will have to come up with some kind of incentive scheme which would give the taxpayers the option to pay 25 to 30 per cent more tax than the normal tax for one year in litigation. All of their previous tax issues have been in litigation for years.
The KCCI president said that a permanent desk should be set up in the FBR, which should liaise closely with the KCCI and all other houses of the country to find new taxpayers. Hunting should be based on pleasant relationships.
“We will help the FBR identify hundreds of negligent areas where trade worth billions of rupees continues but no taxes are being paid,” he said. “The FBR has to divert its machinery to areas where periodic audits have to be minimized as such audits do not yield much but are a waste of time for taxpayers and the FBR. ۔ “
Zubair Motiwala, chairman of the Businessmen’s Group, said the FBR should disclose its priorities, what changes it wants and what will be the focus of the budget so that the KCCI and other trade associations Make definite suggestions for inclusion in next year’s budget.
Motiwala said it was time to focus on small cadres and small and medium enterprises whose income tax returns are stuck as small businesses face severe cash flow problems in the aftermath of the quaid. Face and do not have access to banking channels. “The FBR should start by settling some amount like Rs. 50,000 or Rs. 100,000 to settle income tax refund claims, which will bring some relief in the lives of small traders.”
Motiwala said it was grossly unfair to punish someone who had already lost his industry and was living on rental income.
“The number of audit notices issued during the last three years will exceed the number of audit notices issued during the last 20 years, which clearly indicates an atmosphere of harassment,” he said. “The government needs to provide a functioning environment so that the business community can focus on its readiness and explore new markets.”