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Chairman Federal Board of Revenue visits Federation of Pakistan Chambers of Commerce & Industry

Karachi, March 07, 2013 (PPI-OT): Mr. Ali Arshad Hakeem, Chairman of the Federal Board of Revenue (FBR) along with members of his team Malik Abdus Samad, Deputy Chairman, FBR; Mr. Muhammad Raza Baqar, Member, Inland Revenue, FBR; Khawaja Tanveer Ahmed, Chief Commissioner, Inland Revenue, FBR and Mr. Khalid Mahmood, Director General, Intelligence and Investigation , FBR visited FPCCI Head Office, Karachi and held a meeting with Haji Fazal Kadir Khan Sherani, President, FPCCI, Mr. Tariq Sayeed and Mr. S.M. Muneer, former Presidents, FPCCI; Sheikh Shakil Ahmed Dhingra, Shaikh Haroon Rashid and Begum Salma Ahmed, Vice Presidents, FPCCI and Mian Shaukat Ahmed, Mian Zahid Hussain, Mr. Zubair F. Tufail, Mr. Khurram Sayeed, and other prominent members of FPCCI.

During the course of meeting various issues pertaining to taxes came under discussion. While speaking on the occasion Haji Fazal Kadir Khan Sherani appreciated the efforts of FBR for expansion of income tax network which will contribute towards increasing the tax share in GDP.

He also appreciated FBR’s strict action against malpractices, but pointed out that the SRO culture and ad hoc-ism in FBR polices should be eliminated. He suggested that long term, business friendly policies must be made with the consultation of FPCCI.

However, he lamented the issuance a series of SROs which may hurt trade and industry and elaborated their repercussions on trade and industry.

Referring to the imposition of 5% withholding tax on all imports (both for commercial and industrial importers) vide SRO 140, he said that this will create refund problems particularly for industrial importers.

During the meeting the Chairman FBR accepted various demands of the FPCCI members made by the President and the members in the meeting which was highly appreciated.

In this respect, the President particularly appreciated the FBR Chairman for reducing the sales tax rate from 2% to 1% on value added 5 export-oriented industries as earlier levied vide SRO 154 as it would create a problem of refund and promote corruption as under the existing system, millions of Rupees are stuck up in the form of outstanding refunds and would create a problem of cash flow.

Mr. Sherani also appreciated for reconsidering SRO 98, under which FBR had arbitrarily and exorbitantly increased the withholding tax deduction rate from 1% to 1/5th (20%) of the sales tax involved which would adversely affect the business activities in organized/ documented sector.

He also agreed to consider removing the anomaly for commercial importers who pay value added tax at customs stage

In response to the FPCCI President’s demand, the Chairman FBR also agreed to make amendment in SRO 647/2007 to allow adjustment of accumulated sales tax refund to plastic industry instead of refund.

He invited the FPCCI members to visit him in Islamabad where all pending issues would be resolved amicably through discussion.

Accepting the FPCCI President’s demand, the Chairman FBR then and there decided to allow amnesty of non-duty paid vehicles including public transport, which will be a great benefit to the poor masses in the provinces of Balochistan, Gilgit-Baltistan and Khyber Pakhtunkhwa.

As pointed out by the President of FPCCI regarding the huge volume of smuggling of livestock from Pakistan to Afghanistan and Iran and the issue of life of reconditioned cars being imported into Pakistan, the Chairman FBR said he would look into the matter.

Regarding the Amnesty Scheme for industrialization that is being studied by the FBR, the President appreciated FBR Chairman for bringing out the scheme in consultation with FPCCI representatives.

The FPCCI Chief assured all cooperation of FPCCI to the FBR against action of non-Tax Payers. He said that FPCCI will not support the Tax evaders.

Haji Fazal Kadir Khan Sherani thanked the FBR Chairman for giving a patient hearing to the problems raised in the meeting and for extending his cooperation for resolving the issues. The meeting was concluded with presentation of the FPCCI Crest to Mr. Ali Arshad Hakim.

For more information, contact:
Syed Masood Alam Rizvi
Secretary General
Federation of Pakistan Chambers of Commerce & Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk

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