The Lahore Chamber of Commerce and Industry has urged the Federal Board of Revenue (FBR) to avoid implementation of Audit Policy 2016 till the resolution of business community's reservations. "FBR should not act as trouble maker but to act as facilitator for the business community", said LCCI President Abdul Basit while addressing a press conference on "Audit Policy 2016" here at the Lahore Chamber on Friday.
The LCCI Vice President Muhammad Nasir Hameed Khan, former Vice President Kashif Anwar and former Executive Committee Member Maqsood Butt also spoke on the occasion. The LCCI office bearers suggested the Federal Board of Revenue to complete its homework first and remove the flaws in its own system. The Audit Policy 2016 will open the floodgates of corruption, they added.
Abdul Basit said that reportedly FBR has approved the Audit Policy 2016 without taking the stakeholders into confidence. There is a major policy shift that already audited taxpayers can be reselected for audit through the new policy which is by no means acceptable to the business community. We propose to exempt the already audited taxpayers for at least 2 years, he added.
Pakistan has one of the lowest Tax-to-GDP ratios in the world. The tax-to-GDP ratio in Pakistan was 14 percent in 80s that has been dropped to around 10.5 percent and such policies will further aggravate the situation. Those businessmen should be exempted from audit who are already done with audit.
He said that under the new Audit Policy 2016 all NTN holders, salaried person and even pensioners have come into "audit net" that is a sheer injustice. He said that according to previous practice, export sector was allowed to get exemption from audit after paying one percent additional tax but this facility is being withdrawn in the new policy.
Abdul Basit urged the Federal Board of Revenue (FBR) to avoid sudden policy shifts in the larger interest of the trade, industry and economy. He said that abrupt changes in trade and industry related policies and lake of consultation with the stakeholders are emerging as a big challenge for the business community. He said that Pakistan ranked 156th as far as ease of taxpaying system is concerned. It is because of unjustified taxation system and lake of consultation with the stakeholders.
The LCCI Vice President Muhammad Nasir Hameed Khan said that FBR should guide the taxpayers but instead it is penalising the people. "In such scenario who will be willing to come into the tax net?" he asked and urged the FBR not to implement Audit Policy 2016 without taking the stakeholders on board. He also urged the Federal Finance Minister Ishaq Dar and Chairman Federal Board of Revenue to visit the Lahore Chamber at earliest to listen the point of view of the business community.