Lahore, January 23, 2017 (PPI-OT): Audit Policy 2016 of the Federal Board of Revenue has the flaws that must be removed to address the genuine reservations of the business community.
The point was raised at the meeting of LCCI Standing Committee on Finance, Taxation and Sales Tax here at the Lahore Chamber of Commerce and Industry. The LCCI Vice President Muhammad Nasir Hameed Khan and Convener Standing Committee Tanvir Ahmad Sufi spoke on the occasion while the meeting was also attended by Qari Habib Ur Rehman Zubairi, Zeshan Khalil, Mustafa Ashraf, Muhammad Akram Malik, Sheikh Khurram Abbas, Rana Asim Bashir, Abdul Waheed and M. Ihtesham.
At the meeting various issues including budget proposals, sales tax and income tax registration, establishment of help desk and complicated taxation system also came under discussion.
The LCCI Vice President Muhammad Nasir Hameed Khan said that lack of consultation on policy matter is one of the biggest reasons of trust gap between the business community and the government. He said that Federal Board of Revenue could attract more tax returns through policy reforms. He further said that the philosophy of considering fines and penalties as revenue measure is not logical and should be reconsidered.
Convener of the Standing Committee on Finance, Taxation and Sales Tax Tanvir Ahmad Sufi said that Federal Board of Revenue would have to satisfy business community on the Audit Policy 2016 which was announced without any consultation. He suggested that conducting audit of salaried persons having no any other source of income should be excluded as tax is withheld and deposited by the employer. He said that the cases of Final Tax Regime should be excluded from audit e.g. Dividend Income, Bank Interest and Rental Income etc.
Tanvir Ahmad Sufi said that such incomes which are exempt from tax like Foreign Remittances and Agricultural Income should not be audited. He said that share of partners in case of Association of Person (AOP)/Partnership Firm where there is no any other income of partner should also be an exclusion from audit. He said that businesses whose audit has been carried out in last three years should not be considered for audit.
The Committee also decided to invite all the Chief Commissioners one by one to take up important matters of the business community. They urged the Federal Board of Revenue to establish a help desk at LCCI for Sales Tax Registration, Income Tax Registration and Change of particulars etc. the Committee Members said that assessment mechanism should be established by the Federal Board of Revenue. They said that local investors should be encouraged in Chipna Pakistan Economic Corridor Project (CPEC) and a well-balanced Federal Industrial Policy should be formulated to in this regard.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan