Karachi, May 12, 2016 (PPI-OT): Special Assistant to the Prime Minister Haroon Akhtar Khan has overturned decision of the FBR to impose six percent withholding tax on the turnover of the flour mills located in Islamabad terming it against the interests of masses.
He directed the FBP officials to stop serving notices of flour millers and continue to get tax as per the practice since last four years as tax on turnover will jack up prices of the staple.
Khan also asked the owners of grinders to improve their documentation to avoid taxation problems in future.
The decision was reached in a meeting between Special Assistant to the Prime Minister Haroon Akhtar Khan and President FPCCI Abdul Rauf Alam who was leading a delegation of All Pakistan Flour Mills Association including its Chairman Asim Raza and former president ICCI Tariq Sadiq.
Member Inland Revenue FBR Rehmatullah Wazir, Member Custom Nasir Masroor, Member Operations Internal revenue Dr. Muhammad Irshad and other officials were also present in the meeting.
Earlier, Abdul Rauf Alam, President FPCCI and flour millers informed Khan that tax is deducted on the commission earned by the commission agent while there is no tax in case wheat is purchased from planters.
They said that now six percent WHT has been imposed and notices have been sent to the millers which will increase price of the flour almost by Rs5 per kg which is against the interests of masses.
We have no option to stop purchases during the season and close the mills which will result in crisis, they said.
On this, Haroon Akhtar Khan directed the officials to deduct tax as per the practice while Abdul Rauf Alam lauded his decision to provide relief to the business community terming his a ray of hope for industrialists and traders.
He said that we are highly satisfied with the conduct of Mr. Khan which has infused confidence in the business community.
For more information, contact:
M. A. Lodhi
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Tel: +92-21-35873691, 93-94