TMA clarifies WWF notices

The members of Towel Manufacturers Association of Pakistan are receiving time and again notices of payment of worker welfare fund (WWF) which is creating harassment to the crippling Export Oriented Industry resultantly it might collapse.
The pertaining points to worker welfare fund (WWF) on this industry are as under: 1.As per income Tax Ordinance 2001, the Export Oriented Industries file its Income Tax Return under Section 115(4).
2.The Returns are filed u/s 115(4) declaring export/sales, therefore, the deduction of Tax u/s 148 of the Income Tax Ordinance 2001 is full and final discharge of tax liability
3.The Assessing Officer levying worker welfare fund (WWF) on the imputable income u/s 115(4) of the Income Tax Ordinance 2001 is clearly against the Income Tax Ordinance 2001 for the Export Oriented Industry.
4. Our observation supported by the decision of the Hon'ble Peshawar High Court in the case of Latif Ghee Industry (Pvt) Limited [2006] 94 - Tax 79 (H.C. Peshawar)] wherein it is vividly clear that no other tax could be levied. The respective quotation are being reproduced herewith:
"Where law expressly hold out to an assessee that in case of particular receipts the deduction made at source in respect thereof shall be construed as final discharge of liability under the Income Tax Ordinance, any further charge with reference to the provisions contained in another legislation cannot be justified.
Same is the case where the law provides that the tax collected at the import stage shall deemed to be the minimum amount of tax liability determined exceeds the amount so collected the said amount shall be adjustable against such liability.
(Learned Income Tax Appellate Tribunal has upheld in the instant case that the tax under normal law is below the minimum tax payable by the assessee hence tax u/s 800D is evaded). This type of practice harms economic activities as well as produces hurdle in the way of investment.
"The charge provisions of Section 4 of Worker Welfare Fund Ordinance, 1971 are clear that the legislature intended the charge on the real income of an industrial concern. There is nothing in these provisions, which can possible be extended, enlarged or stretched to hold that the levy was contemplated on presumptive income as well."
We hope that all above explanations would be found by the Income Tax Authority according to law and Income Tax Ordinance 2001 and issue necessary instruction to all assessing officers for withdrawal of all such notices issued to members of Towel Manufacturers Association of Pakistan.-PR