Industrialists and traders have appreciated the first order issued by recently appointed Chairman Federal Board of Revenue (FBR) Shabbar Zaidi after assuming charge in which all the commissioners land revenue have been barred from freezing bank accounts which was a long pending demand of the business community. President Federation of Pakistan Chamber of Commerce & Industry (FPCCI), Engr Daroo Khan Achakzai has hailed the directive of the newly appointed Chairman, Federal Board of Revenue (FBR) Shabbar Zaidi, for not attaching the bank account of a taxpayer unless his Chief Executive Officer/Owner is informed at least 24 hours prior to attachment and approval of the Chairman FBR is obtained.
He said that the FPCCI have been clamouring for long for keeping a deterrent against the misuse of discretionary powers by the tax officials for recovery of arrears and attachment of bank account under Section 48 of Sales Tax Act, 1990 and Section 140 of Income Tax Ordinance 2001.
He said that there were increased incidences of bank account attachment and other serious coercive measures taken by the tax officer under the garb of the Section 48 for recovery of arrears and such abuse of powers were creating trust deficit and lack of confidence of taxpayers in law which are pre-requisite for success of any scheme.
Engr Daroo Khan Achakzai hoped that the directive would address the complaints of business community about the unnecessary attachments of the bank accounts for recovery of the disputed accounts from the bank accounts of the taxpayers without fulfillment of legal process. "In many cases accounts have been attached without prior notice of the CEO/principle officer owner of the business community", he added.
President Karachi Chamber of Commerce & Industry (KCCI) Junaid Esmail Makda also welcomed the first order issued by Shabbar Zaidi immediately after assuming charge in which all the Commissioners Inland Revenue have been barred from freezing bank accounts which was being demanded by KCCI since long.
He termed the order as 'pro-business move' and the first step in the right direction which would not only help in restoring the lost confidence of the business & industrial community but would also prove to be favourable for the economy as after seeing such pro-business initiatives, many individuals would prefer to come into the tax net, which would result in documenting the economy and improving the country's lowest tax-to-GDP ratio.
Junaid Makda pointed out that by virtue of this order, it would be mandatory for all Commissioners of Inland Revenue to obtain permission from Chairman FBR prior to freezing any bank account while at least 24 hour prior notice will also be served to the owner of the bank account which the business and industrial community highly appreciates.
He said that the Karachi Chamber had struggled a lot and has been vocally raising voice against massive discretionary powers which have been bestowed to FBR officers even at lower level, intensifying the hardships for the loyal taxpayers.
"As the first step in the right direction has been taken, we, the business and industrial community of Karachi, expect more such moves in near future. We firmly believe that massive discretionary powers have to be curtailed which is the only way forward to improve revenue collection, ensure economic prosperity and make the FBR a taxpayers' friendly institution", he added. While extending felicitation to Shabbar Zaidi, President KCCI advised Chairman FBR to remain steadfast and keep on taking such bold steps which are in the larger interest of the country and the business community.
Junaid Makda also extended Karachi Chamber's full support and cooperation to the chairman FBR for all his future endeavors towards improving the existing taxation system of the country which is in really bad shape.
He hoped that the Chairman FBR would also review and take KCCI's budget proposals into consideration which have been compiled after taking inputs from all the stakeholders. "KCCI's budget proposals have been delineated after intense brainstorming as we wanted to ensure that all our recommendations for federal budget 2019-20 are devised in such a manner that they prove to be favourable for the economy and ensure an enabling business environment for the entire business & industrial community of Pakistan", he added.
President Site Association of Industry (SAI), Saleem Parekh expressed his satisfaction over the balanced approach on handling recoveries taken by the newly chairman FBR.
The condition of the chairman's approval before seizing bank accounts would make the process transparent by limiting the discretionary powers of field officers.
It is expected that the Chairman will devise policies that will channel the full force of FBR on broadening the tax base instead of subjecting the current tax payers to different types of annual audits.
The chairman must realise that the only way to broaden the tax base is to make the cost of doing business of non-filers more than the cost doing business of filers. The current system is heavily in favour of non-filers. A filer is subjected to Income tax audit, sales tax audit, withholding tax audit & audits before issuance of Income tax exemptions u/s 153 and u/s 148 on an annual basis whereas non-filers are allowed to trade, buy cars and properties and travel. The energies of the FBR will be better spent if the focus is on non-filers who continue to enjoy many privileges with impunity.
Muhammad Zubair Motiwala, Patron, SITE. Association of Industry added that a culture of tax collection with transparency, respect and oversight will flourish under the dynamic leadership of Shabbar Zaidi where filers will be considered as partners of FBR instead of adversaries.
Chairman, Pakistan Yarn Merchants Association (S & B Zone) Muhammad Saqib Goodluck said that new Chairman of FBR Shabbar Zaidi has taken business friendly decisions towards the promotion of Economical & commercial activities, while taking charge of his new responsibilities. He said that business community faces a number of issues from FBR, particularly Harassment to business community has became a routine of FBR officials.
He said business community, appreciates the orders from new Chairman for stoppage of Harassment towards Business Community. He said that our country will only succeed economically when a favourable Business environment on equality will be provided & by reducing taxes such a system may adopted which may be acceptable to each & everyone. He further said that un-necessary initiatives of FBR on & off basis along with Harassment attitude have affected badly the confidence in business community. It will be a difficult task for new chairman of FBR to restore the confidence of business community.
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