LAHORE: All Pakistan Textile Mills Association (APTMA) Chairman Kaan Arshad has condemned the Federal Board of Revenue’s (FBR) recent demand of submitting affidavits regarding buyers and sellers, saying that registration of FIRs on this account is unlawful.

He was addressing a press conference at APTMA Lahore office. Senior Vice Chairman APTMA Jamil Qasim, Vice Chairman Shehzad Ahmed Sheikh, Chairman South Zone Naveed Ahmed, former Chairmen Abdul Rahim Nasir and Adil Bashir besides Secretary General Shahid Sattar Mohammad Raza Baqir were also present on the occasion.

Arshad said the FBR’s requirement for member mills to submit affidavits guaranteeing that all buyers and suppliers in their supply chain have deposited tax and furnished correct returns is unjustified.

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Registration of 41 FIRs against different industrial units, including 12 FIRs against member mills of APTMA, is highly condemnable, he stressed.

He argued that the Sales Tax law only mandates buyers to verify suppliers’ Active Taxpayers List (ATL) status and ensure payments through banking channels. “This demand exceeds legal provisions and places an unrealistic burden on our members,” Arshad said, adding that buyers cannot be expected to investigate the entire supply chain; it’s akin to asking them to perform a policeman’s role.

He said all the APTMA members are reputed exporters and arresting their Chief Financial Officers without first adjudicating civil financial liability is unlawful and creates harassment, fear, and business closures.

Arshad emphasized that APTMA has always encouraged tax compliance but refused to hold the textile industry responsible for others’ wrongdoing. Instead, he proposed enhancing trade bodies’ role in supporting FBR’s compliance efforts.

Copyright Business Recorder, 2024