Regional Tax Office (RTO) is making hectic efforts to enhance tax base in addition to facilitating the tax payers but concealment of tax would not be allowed, said Shad Muhammad Chief Commissioner in Land Revenue Faisalabad.
Addressing the representatives of the business community in Faisalabad Chamber of Commerce and Industry (FCCI) here today, he disclosed that as many as 854 new multi storey plazas were constructed during last 4 years in Faisalabad. "Out of these 558 are owned by the tax payers while remaining are not paying even a single penny in national kitty despite of having properties worth millions of rupee", he added.
Commenting on the complaints regarding hurdles in sales tax registration, Shad Muhammad said that only 157 cases are pending and most of these have incomplete documents. He said that a strategy has been evolved to deal with such cases and hoped that this issue will be settled down during next month.
Quoting the pending cases of zero rating at Regional Tax Office level, he said that those related to 2014 were 14000 but now only 10000 are lying pending. He further added that in 6000 cases the amount of refund claim is more than 10 million while it is less than Rs 10 million in remaining cases. He said that instructions have been issued to settle down these cases in single hearing.
About income tax appeal cases of 2015, the Chief Commissioner said that decisions in 25% cases has been upheld while in other 25% the competent appellate courts have suggested some modifications. Yet in remaining 50% cases, the appeals have been rejected. He said that in cases which have been decided the appellants should immediately clear their liabilities. He said that we do not want to issue their arrest warrants or attachment of property orders which is allowed under the law. He said that we have directed our staff to visit such persons and convince them to voluntarily pay their dues. "We are also ready to facilitate them to make payment in instalments", he added. Regarded pendency of audit cases, he said that a mechanism has been carved out and hopefully 80% cases could be settled down by November and December.
Chief Commissioner also underlined the importance to increase the ratio of Tax to GDP which is dismally poor at present. He said that system to issue NTN has also been streamlined and these are being issued without any unnecessary delay. He also assured to settle down the Tax exemption case of FCCI and invited a delegation FCCI to visit his office to resolve the pending issues.
Earlier in his address of welcome, president FCCI Engineer Muhammad Saeed Sheikh welcomed Shad Muhammad and briefly introduced Faisalabad and FCCI. Commenting on the economy, he said that all the macroeconomic indicators are positive but despite of this fact, the investment in private sectors is only 10% of our GDP which is 18% in other emerging economies. He also underlined the importance of exports and said that these are declining during last three consecutive years. As compare to 2014-15, it has recorded 11% decline, he added. President FCCI further said that the debt servicing is more than the total development budget of Pakistan and it has necessitated immediate and positive change in our existing policies. He suggested that the private sectors should be encouraged to play its dynamic role in overall economic growth of Pakistan.
He said that reduction in oil prices and CPEC has provided a unique opportunity to Pakistan and we must encourage our industrial sectors in order to enhance our exports. Engineer Muhammad Saeed pointed out high cost of doing business and rampant changes in government policies which are also responsible for decline in our exports. He said that during last two years the deficit in current account has also been recorded a huge increase of 92%.
Commenting on the taxation related problems, President FCCI said that despite of daunting challenges, the business community was making strenuous efforts to continue their businesses but on the other hand, the heavy taxes have become unbearable burden on the existing tax payers.
Engineer Muhammad Saeed Sheikh pointed out two major reasons for economic distortion including declining foreign remittance and decrease in textile exports. He said that this situation will further aggravated due to continue meltdown in Qatar and other Gulf states. He said that only value-added textile processing sector can drag out Pakistan from this critical situation. He said that this sector has potential to prepare a shirt valuing 10 to 70 dollars from only half meter of cloth.
He said that despite of the contribution of this sector, the noose is further tightened around its neck instead of facilitating it. He demanded a balanced and uniform taxation system without any exemption to any sector. He further said that government had assured to add 1 lac new taxpayers every year in order to share the burden of the existing taxpayers. He said that nothing has been done in this respect which is making the viable units sick.
Engineer Muhammad Saeed Sheikh said that 5 export sectors were declared zero rated from this financial year but practically this facility has back lashed as regard value added textile sector. He said that immediate steps should be taken to trickle down the benefits of zero rating to the value added sectors of economy. He also complained non-payment of refund claims. The online refunds system of FBR is reported non functional which should be made functional on top priority basis.
Chaudhry Muhammad Nawaz, Engineer Rizwan Ashraf, Shahid Ahmed Sheikh, Rana Hafeez Ullah, Abid Masood and Mian Muhammad Latif took part in the question answer session while Rana Sikandar Azam SVP offered vote of thanks. Later Vice President Engineer Ahmed Hassan presented FCCI memento to Shad Muhammad Chief Commissioner in Land Revenue.
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