Federal Board of Revenue (FBR) Chairman Dr Muhammad Irshad has said the number of filers has been gradually increasing since this government came into power. The number of filers jumped from 0.7 million in 2013 to 1.4 million during the current fiscal year. The tax rate is also being reduced one percent annually during the present regime.
FBR chairman stated this while speaking at a meeting with the office-bearers of Lahore Chamber of Commerce and Industry (LCCI) on Friday. He said that filers would be facilitated and nobody would be allowed to tease or harass them as they are backbone of the economy. Chief Commissioner RTO-II Lahore Khawaja Adnan Zahir, Chief Commissioner LTU Lahore Zulqernain Tirmzi, Chief Commissioner CRTO Lahore Syed Nadeem Rizvi, Chief Collector Customs Lahore Zeba Hai and, Commissioner Zone-VII CRTO Lahore Mahmood Jafri, FBR Foundation Islamabad Saleem Ranjha also spoke on the occasion.
He said that refunds of Rs 57 billion have already been given while issue of remaining would be resolved soon. He said that there is no tax on input or output in zero rated regime while government is giving maximum facilities to the export-oriented industry.
He said that there would be no surprise inspection of the business premises. Concerned businessmen would be informed well before the time and all work would be done in friendly atmosphere. He urged the businessmen to cooperate with the department for pending audit cases. He said that forthcoming budget is well consulted and based on the theme of revival of the economy.
FBR chairman urged LCCI to forward its proposals regarding two percent withholding tax on non-filers, poultry sector, establishment of National Revenue Authority and Appellant Tribunal to the FBR for consideration. He also announced that no surprise visits of business premises would be conducted as he wants to establish friendly relations with the traders. He said the growth of private sector would help increase revenue.
Dr Muhammad Irshad promised to facilitate them to the maximum and said, "We are friends therefore we should not see each other as rivals or hostile as our objective is same". Misunderstanding is the major reason of problems therefore regular liaison with the business community is being ensured to tackle this issue, he said and suggested formation of an advisory committee having representatives from public and private sectors.
LCCI President Abdul Basit highlighted the areas where the trade and industry expects relief from the FBR. He said that the policies should be aimed at widening the tax net rather than taxing the already taxed. There is a strong need for long-term planning and consistency in policies. He said tax returns and other documents are modified each year which creates confusion.
He said that increasing tax revenues and decreasing number of tax filers is an ample proof of the fact that the FBR is putting additional burden to the existing taxpayers. He further said that share of industry in tax collection is around 76 percent that is dwindling the competitive edge of the industry and affecting the exports. LCCI members are paying tax in Sindh and than in Punjab for same consignment that is double taxation. LCCI has given suggestion to the Punjab Revenue Authority (PRA) to give authority to a single agency for tax collection. Federal government should also form a National Revenue Authority to collect all taxes once in a year. It would reduce frequency of the taxes and protect business community from the officials of various departments. Abdul Basit said that there should be independent tribunal for tax related cases and decision on appeal should be made within 90 days. Furthermore, no recovery should be made before the decision of tribunal.
He said that stuck-up refunds should be released within 60 days and in case of delay, concerned department should pay markup on KIBOR rates. He said that adjustment of sales tax deducted in gas and electricity bills of zero-rated sectors is not working properly.
He said that there is no tax on agriculture sector of Pakistan while tax is imposed on livestock that is also a sub-sector of agriculture. He said that poultry feed costs 70 percent of the total input of this sector. He suggested that to increase the exports of poultry, around 62 percent duty should be withdrawn on raw material being used in burger patty and nuggets etc. LCCI president said that food sector should also be given zero-rated facility to get due share in global Halal trade of $300 billion. He said that duty on those raw materials should be abolished that are not being produced in Pakistan. He said that 6.5 percent duty on acrylic raw material should also be withdrawn. He also expressed views on the issues of raids at business premises and bank account attachment.