FBR assures business community: Registered persons to be facilitated to operate as large taxpaying units

ISLAMABAD: The Federal Board of Revenue (FBR) has assured the business community that the registered persons, who have been shifted from the Regional Tax Offices to the Large Taxpayer Units (LTUs), would be fully facilitated through a computerised centralised system to operate as large taxpaying units under the benchmarks set by the board.

The assurance has been given by the tax authorities of the FBR during the meeting with the Islamabad Chamber of Commerce and Industry (ICCI), here on Tuesday at the FBR House.

The issue of shifting of taxpayers, having annual sales of one billion rupees or above, from the Regional Tax Offices to the LTUs was discussed between the chairman ICCI and the tax authorities.

The FBR Member Inland Revenue (Operations) has also assured to address key issues of the business community including payment of outstanding income tax and sales tax refunds would be processed without delay to clear the backlog.

Muhammad Ahmed Waheed, president, ICCI along with Malik Sohail Hussain, former senior vice president ICCI and chief coordinator UBG FPCCI held a meeting with Dr Muhammad Ashfaq Ahmed, Member (Inland Revenue-Operations), FBR in his office and discussed with him tax-related issues of the business community for redress.

Dr Ahmed said that the business community was playing an important role in the economic development of the country and efforts would be made to address their key issues in order to facilitate them in business promotion.

He lauded the role of the ICCI in facilitating the growth of business activities as it was acting as a bridge between the government and the private sector.

He was of the view that the close liaison and smooth working relations between the FBR and the ICCI were important to resolve issues, and generate more economic activity in the region.

He also shared the various initiatives being taken by the government to further improve the taxation system for promoting the economy.

Speaking on the occasion, Muhammad Ahmed Waheed, president ICCI said that the FBR should focus on complete automation of income tax, sales tax and customs duty refunds for timely payment of all refunds that would address the liquidity issues of the business community and help in promoting exports.

He also discussed the issue of Sec-8B of Sales Tax Act that allowed adjustment of input tax amount of only 90 percent of the output tax for a period and emphasized that FBR should allow adjustment of input tax amount of the 100 percent of output tax to facilitate the business community in these tough times.

He said a facilitation desk of Pakistan Customs has been setup in the ICCI that would help in resolving customs-related issues, and further strengthen the relations between both sides.

He discussed many options with member (IR-Ops) FBR for broadening the tax base in order to further enhance the tax revenue of the country.

Malik Sohail Hussain, former senior vice president ICCI and chief coordinator UBG FPCCI, while expressing his views, said that a taxation system characterised by low compliance cost and low tax rates would be instrumental in promoting tax culture and improving tax revenue of Pakistan, and stressed that the FBR should work on these lines.

Copyright Business Recorder, 2020