The Karachi Chamber of Commerce and Industry (KCCI) has proposed that penalty on a registered person, who failed to submit summary of sales and purchase invoices be made in line with the default in submission of monthly return viz, Rs 100 per day and for 15 days Rs 5000.
In a communication to Central Board of Revenue (CBR), KCCI President, Majyd Aziz pointed out that a very harsh penalty of Rs 25,000 was levied on a registered person, who failed to submit summary of sales and purchase invoices. Previously, there was no such penalty, he noted.
The president noted that sales tax authorities had been given powers of recovery of short paid amount of tax along with default surcharge and removal of any goods might stopped from the business premises through attachment of business bank accounts.
He said this empowers the sales tax officials to take action without giving a show cause notice or any notice prescribed U/S 48, which deals with the recovery of arrears or tax. Imposition of penalty may, however, not be made unless a show cause notice is given. This is against the canon of justice and a notice be given to registered person before taking any action, he pleaded.
The KCCI president further noted that the proposal to enhance rate of excise duty on insurance from three percent to five percent would increase the cost of doing business. He pointed out that every business had to insure plant/ machinery, building, stocks and substantial amount is paid to insurance companies as premium.
He demanded withdrawal of the proposal. The president further pointed pout that federal excise duty at the rate of seven percent had been levied on retailers, selling price, which would directly affect the users ie common man and suggested that this extra burden on common man should be withdrawn.
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