The Federal Board of Revenue's (FBR) Audit Policy 2016 is nothing but an attempt to pinch the existing taxpayers instead of expanding the tax net. The policy will give new tactics to the FBR machinery to harass the business community therefore it should be taken into confidence before its implementation otherwise it will cause confrontation between the FBR and the private sector, said Chairman of the Lahore Chamber of Commerce and Industry (LCCI) Founder Group Ijaz Butt while addressing a meeting here on Tuesday.
Less than one percent people are paying direct tax while tax-to-GDP ratio is one of the lowest in the world, he said, adding the situation is demanding relief measures for the taxpayers to expand tax net.
But the situation is quite different and the FBR is making the existing taxpayers a horrible example for those who are not in the tax net. He said the tax laws under Audit Policy 2016 will cause confusion and problems to a large number of taxpayers and promote tax evasion and discourage voluntary compliance of the taxpayers with the tax laws. Unfortunately, the FBR has failed to learn a lesson from the gradually reducing number of taxpayers and still evolving policies without taking business community into confidence.
The chambers of commerce and industry and trade and industrial associations have recently warned to observe black day against the Audit Policy 2016, therefore, the FBR should take this warning seriously.