AGL 40.05 Decreased By ▼ -0.11 (-0.27%)
AIRLINK 129.70 Decreased By ▼ -2.03 (-1.54%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.57 Increased By ▲ 0.10 (2.24%)
DCL 8.85 Increased By ▲ 0.03 (0.34%)
DFML 41.26 Increased By ▲ 0.65 (1.6%)
DGKC 83.69 Decreased By ▼ -0.39 (-0.46%)
FCCL 32.72 Increased By ▲ 0.38 (1.18%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.50 Increased By ▲ 0.15 (1.32%)
HUBC 110.65 Decreased By ▼ -1.11 (-0.99%)
HUMNL 14.57 Increased By ▲ 0.26 (1.82%)
KEL 5.38 Increased By ▲ 0.16 (3.07%)
KOSM 8.41 Decreased By ▼ -0.57 (-6.35%)
MLCF 39.83 Increased By ▲ 0.40 (1.01%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 198.50 Increased By ▲ 3.56 (1.83%)
PAEL 26.70 Increased By ▲ 0.01 (0.04%)
PIBTL 7.70 Increased By ▲ 0.22 (2.94%)
PPL 157.20 Increased By ▲ 1.43 (0.92%)
PRL 26.79 Increased By ▲ 0.11 (0.41%)
PTC 18.40 Increased By ▲ 0.10 (0.55%)
SEARL 82.50 Decreased By ▼ -0.52 (-0.63%)
TELE 8.36 Increased By ▲ 0.13 (1.58%)
TOMCL 34.47 Decreased By ▼ -0.08 (-0.23%)
TPLP 9.07 Increased By ▲ 0.26 (2.95%)
TREET 17.36 Increased By ▲ 0.66 (3.95%)
TRG 61.50 Decreased By ▼ -0.95 (-1.52%)
UNITY 27.48 Increased By ▲ 0.04 (0.15%)
WTL 1.39 Increased By ▲ 0.11 (8.59%)
BR100 10,404 Increased By 217.1 (2.13%)
BR30 31,655 Increased By 318.7 (1.02%)
KSE100 97,323 Increased By 1776.2 (1.86%)
KSE30 30,178 Increased By 600.5 (2.03%)

LAHORE: Field formations of the Federal Board of Revenue (FBR) cannot deny the benefit of an exemption if the taxpayer is entitled to it in plain terms of notification, said sources from among tax practitioners.

They said tax authorities at the level of field formations were involved in issuing arbitrary circulars to defeat the benefit of exemptions set out in the FBR notifications for taxpayers.

They have pointed out one such glaring example of a field formation of Pakistan Customs where one Assistant Collector of Model Collectorate Customs (MCC) Appraisement West had denied as well as circumvented the benefit to the importers of Hybrid Electric Vehicles (HEVs) out of a Board’s Statutory Regulatory Order (SRO), offering exemption of customs duty, sales tax and withholding tax.

The said the Assistant Collector had issued a departmental circular, restricting the exemption to only those vehicles with larger batteries and motor to drive a vehicle.

It was followed by the issuance of show cause notices to the importers one after another to qualify their imports on the touchstone of the circular, which had denied the blanket exemption to them for the import of HEVs.

Also, the subordinate staff initiated the proceedings for the recovery of taxes and duties, along with the imposition of penalties on importers and clearing agents. When challenged, the appellate authority held that the controversial circular did not conflict with the original SRO and termed it clarificatory.

The whole issue took five years before it was settled down once and for all when the apex court declared that anything being inferred extraneously or beyond the scope or tenor of the SRO was not permissible under any rule of interpretation.

Meanwhile, many importers and their clearing agents rained in a fix. At the same time, the fate of the revenue kept hanging in the balance due to the litigating spree.

Leading tax practitioners like Dr Ikram Ul Haq, Shahid Baig, Hussain Sherazi and Shahid Pervaiz Jami further lamented that the HEVs technology, besides being fuel efficient, is also an alternate solution to cautiously concentrate on the issue of global warming, as the proper and futuristic use of this technology will not only improve and recuperate the atmosphere and the ecosystem but also alleviate destructive facets of climate change.

They have pointed out that the exemption on the port of HEVs was logically issued to protect against climate change and minimize the adverse impact in the future.

They added that it is also necessary and a pressing priority to promote and encourage HEVs more and more rather than applying irrational interpretations resulting in unwarranted restrictions on the exemption already in field.

Copyright Business Recorder, 2023

Comments

Comments are closed.