The Federal Board of Revenue (FBR) has expressed serious concern over massive misuse of exemption certificates at import stage and negligible impact of taxation measures taken in last budget (2016-17). Sources told Business Recorder that the critical tax-related issues came under discussion during the day-long Chief Commissioners conference held at the FBR House here on Saturday.
Tax authorities noted with concern that misuse of withholding exemption certificates has considerably increased at import stage during 2016-17. Tax authorities also expressed concern that how field formations have issued inadmissible tax exemption certificates at import stage without following due process of law. It has been decided to immediately take measures to cancel inadmissible certificates through verification exercise and ensure preventive measures to avoid such issuance of certificates in future.
The FBR has also directed the Chief Commissioner to explain reason behind low impact of budgetary measures taken in 2016-17. Despite taxation measures taken in last budget, the FBR has suffered revenue shortfall of over Rs 140 billion in first half of 2016-17. Each Chief Commissioner tried to justify their shortfall in collection. The FBR also finalised the strategy to increase collection in the remaining period of 2016-17, sources added.
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