Karachi Tax Bar Association (KTBA) has expressed grave concern over the withdrawal of the board's policy concession for cases covered under Final Tax Regime (FTR). According to the letter issued to chairman Federal Board of Revenue (FBR), the withdrawal of FBR policy concession for cases covered under FTR given vide FBR letter C.No 4936 ITP/2002 dated October, 5th 2009 was made without any consultation through the circular no.4(36)ITP/2002 dated April, 2 2012.
The association said that the cases of importers/ exporters, contractors etc are covered under section 153, where a person's earning income from dividends, interest income are covered under FTR and in these cases, tax is deducted at source by financial institutions and the same is final discharge of tax liability irrespective of the fact whether a tax payer has earned profit and/or suffered loss.
It further said the Bar had made representations to the board in 2009 when field tax offices attempted to select cases of exporters/importers etc which were covered by FTR for audit. The member direct tax (policy) after deliberations issued policy directions to the field offices that if the cases were covered under FTR, no audit should be conducted until any discrepancy was found.
Expressing concern over the issue, the association said that the withdrawal of FBR policy decision of October, 5 2009 without consultation could be counter productive and lead to unnecessary harassment and added that the said decision would not generate revenue but would cause to harass the taxpayers. The association also urged the chairman FBR to look into the matter and make suitable amendments to facilitate the taxpayers at maximum.