Lahore, May 29, 2015 (PPI-OT): Pakistan Steel Linepipe Industry Association has sought the LCCI help against FBR for issuance of Exemption Certificate and Stocktaking. A delegation of Steel Linepipe Industry Association, led by its Chairman Muhammad Hashim, called on the LCCI President Ijaz A. Mumtaz and informed him that Steel Linepipe industry is under tremendous pressure as the Federal Board of Revenue is reluctant to issue Exemption Certificates under Section 148 of the Income Tax Ordinance, 2001 and Stocktaking under Section 38 of the Sales Tax Act, 1990.
They said that the exemption regime was revamped/simplified by the Federal Government through Finance Act, 2013 by insertion of clause 72B which simplified the procedure of exemption. However, they said, FBR again complicated the issue vide SRO 717 (I)/2014, especially condition (v) of the said notification which allows maximum 110% of imports made during the previous tax year.
Likewise, the delegation members said, the proceedings for stocktaking under section 38 of the Sales Tax Acct, 1990 are just an attempt to harass and recover sales tax amount for achieving revenue target by hook or crook. He said that visiting teams are harassing the taxpayers in the name of stocktaking and creating assumptive calculations by charging illogical “value addition” and thereafter, harass and threaten the taxpayers by coercive measures i.e. suspension of registration, imposition of 40B or even registration of FIR against the registered taxpayers.
They said that these issues are creating lot of resentment in the business community. Speaking on the occasion, the LCCI President Ijaz A. Mumtaz assured the delegation that their issues would be taken up with the higher authorities of the Federal Board of Revenue (FBR). He said that trade and industry is facing various internal and external challenges and is in dire need of a helping hand of the government agencies like Federal Board of Revenue but the situation is contrary to this.
LCCI President said that Policy makers have to understand that Pakistan is in a state of “economic war” which can be won with an active role of the businessmen. “How can the businessmen play their due role in economic uplift of the country when they would not be able to continue their businesses with peace of mind. The LCCI President urged the Federal Finance Minister Ishaq Dar and Chairman Federal Board of Revenue to take notice of the situation and issue necessary directions for the early solution of these problems.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan