The Federal Board of Revenue has taken cognisance of disparity in rates of sales tax and is moving towards introducing single digit sales tax; however, it would be achieved by gradual reduction in tax rates in a piecemeal manner, said Mumtaz Haider Rizvi, Chairman FBR while addressing post budget seminar organised by Southern Regional Committee (SRC) of Institute of Chartered Accountants of Pakistan (ICAP) at DHA Golf & Country Club, Karachi.
Mumtaz Rizvi said that FBR is eyeing towards a mammoth revenue target fixed by the govt and is hopeful to achieve target of Rs 1952 billion fixed for the current fiscal year. However, he emphasised that with 7th NFC Award, major subjects have been transferred to the provinces which are also getting significant funds as compared to the past. He, therefore, stressed the need that local governments, union councils, etc should assist the federal government in reaching out to the untaxed sectors of the economy like wholesalers, middlemen and retailers. The top tax manager of the country also appreciated ICAP's efforts for organising the seminar and discussing the tax measures proposed in Finance Bill 2012 and underscored the importance of holding identical brain storming sessions on economy and taxation.
In his key-note address, Asad Umar, Former President, Engro Corporation Limited identified difficult access to capital, energy crisis & institutional decay as the major threats to the economy which Pakistan faces today. However, he was optimistic that strong consumer base, wealth of natural resources coupled with Pakistan's geo-strategic location are our strengths which should be capitalised by the government so that trickledown effect of the economic progress may be enjoyed by the masses.
In his address on taxation measures proposed in Finance Bill 2012, Saqib Masood, FCA, Head of Tax Services in KPMG Pakistan termed the budget as positive with respect to personal taxation. He said that significant relief in tax incidence for individuals and AOPs have been offered in the Finance Bill 2012. He also lauded the amnesty which has been revalidated for investment in listed securities, rationalisation of withholding taxes and incentives in the form of tax credits. However, he was critical for no reduction in corporate tax rates. Besides, he condemned various amendments which, in his view, had enhanced the powers of tax commissioners, overruled court judgements and restricted the powers and obligation of Appellate Authorities. On the sale tax side, Saqib appreciated the reduction of multiple tax rates and hoped it would prove to be productive for the businesses at large.
The 2nd phase of the seminar was followed by a panel discussion. Among the panellists were Masoud Naqvi, FCA, Ebrahim Sidat, FCA and Shabbar Zaidi, FCA while Farrukh Junaidy, FCA acted as a moderator. During the panel discussions, interactive Q&A was witnessed with heated debate on certain significant tax measures taken in the budget. The seminar was also addressed by Adnan Mufti FCA, Chairman SRC.
Seminar was attended by over 1,300 members of ICAP, ICMAP and representatives of trade and industry. Shahid Jatoi, Chief Commissioner, Large Taxpayers' Unit, Karachi, Khawaja Tanveer Ahmad, Chief Commissioner, Regional Tax Office and Vishnoo Raja Qavi, Commissioner, Large Taxpayers' Unit, Karachi were also present at the seminar.-PR