LAHORE: The Lahore Chamber of Commerce and Industry has strongly condemned the Federal Board of Revenue’s ongoing raids on industrial units, which are severely disrupting the business environment.
“The LCCI has expressed deep concern over the harassment of taxpayers under the pretext of combating sales tax evasion and urged Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to take immediate action to stop these harmful practices.”
The LCCI President Mian Abuzar Shad said that the FBR has been raiding industries without prior notice, and registering FIRs without issuing show-cause notices, investigation and demanding impractical affidavits from Chief Financial Officers (CFOs). These affidavits require CFOs to guarantee that all of their buyers and suppliers, and even their extended networks, are complying with the law — a requirement that Mian Abuzar Shad described as both unreasonable and impossible. He questioned how any CFO could be expected to take responsibility for the actions of entities several layers removed from their direct control.
The meeting was attended by a significant number of concerned taxpayers, who shared alarming stories of their experiences with FBR raids. They explained that the lack of proper investigation and the abrupt registration of FIRs have left businesses in a state of fear and uncertainty. Many businesses have been forced to divert their time, energy, and financial resources toward defending themselves in legal battles instead of focusing on growth and productivity.
The LCCI President argued that these heavy-handed tactics are stifling business operations at a time when Pakistan’s economy is already under significant strain. “The business community is a crucial driver of economic growth, and by creating an atmosphere of fear, the FBR is only impeding our progress towards economic recovery,” he said. He emphasized that businesses cannot operate in an environment where they are constantly being harassed by the authorities without due process.
Mian Abuzar Shad called for a more structured and transparent process to address any legitimate concerns the FBR may have about tax evasion. He outlined the need for a step-by-step approach, including the issuance of show-cause notices, followed by thorough investigations. If evidence is found of wrongdoing then and only then should the FBR proceed with legal action. “The current practice of jumping straight to legal action, without giving businesses a chance to explain or defend themselves, is unjust and counterproductive,” he added.
The LCCI President further noted that it is the FBR’s responsibility to ensure that registered taxpayers are monitored regularly. He said, “If the FBR fails to monitor a taxpayer for five years that is the FBR’s failure, not the fault of the businessman. Instead of admitting its shortcomings, the FBR is shifting the blame onto the business community, worsening the already fragile economic situation.”
The Lahore Chamber reiterated its demand for the government to halt these raids immediately, warning that if such actions continue, they will inflict long-term damage on Pakistan’s industrial base. “The government’s efforts to stimulate economic recovery and attract investment will be in vain if the FBR continues to pursue these aggressive tactics against the very taxpayers who are key to driving economic growth,” Mian Abuzar Shad said.
He urged Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to take immediate and decisive steps to rein in the FBR’s overreach and ensure that future actions are in line with the principles of due process and fairness. The LCCI emphasized that the government must foster a more supportive business environment by promoting policies that encourage growth, investment, and economic stability rather than creating hurdles for the business community.
The Lahore Chamber of Commerce and Industry remains steadfast in its commitment to defending the rights of businesses and ensuring a fair, transparent, and conducive environment for industrial growth in Pakistan. It called on the authorities to prioritize the resolution of these pressing issues, warning that failure to do so will have severe implications for the broader economy.
Copyright Business Recorder, 2024
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