SOHAIL SARFRAZ

ISLAMABAD: Over 100-150 retailers gathered at the Federal Board of Revenue (FBR) here on Thursday and made hue and cry on budgetary measures to bring retailers into documented regime, seeking introduction of voluntary tax payment scheme and amendments in the retailer registration procedure announced in budget (2014-15).

Sources told Business Recorder here on Thursday that a meeting was scheduled with the retailers at 2p.m at the FBR House. The representatives of different retailers associations reached FBR House to have meeting with the FBR Chairman Tariq Bajwa and Shahid Hussain Asad Senior Member (Inland Revenue) Policy and other relevant tax officials at the Board. Mian Manan MNA along with other 8-10 leading retailers’ representatives of All Pakistan Retailers Association started meeting with the FBR Chairman and other FBR Members. Retailers from Karachi also met the tax authorities on the invitation of the FBR. The meeting smoothly discussed issued like SRO 608, penalty on late filing of WHT Statements and new Income Tax Return Form for Tax Year 2014.

In the evening, a large number of uninvited guests stormed the FBR Building and number of retailers gradually increased on the third floor of the FBR House and crossed over 100-150 creating panic like situation for the tax authorities. This happened suddenly and FBR was not expecting such a large number of visitors. Till 7:30-8pm, the mob of retailers shouted and made speeches for fulfillment of their demands. The retailers chanted slogans that SRO-608 regarding two tiers of compulsory Sales Tax Registration for Retailers is not acceptable to the business community. They were also very angry over the 3 months sales tax arrears (July-September) charged in the electricity bills of October 2014 issued to the retailers.

Tax authorities were unaware about the uninvited persons shouting at the FBR and using abusive language against the tax authorities. The retailers were also angry over the new procedure for registration announced in budget (2014-15). Due to increased number of retailers at the FBR House, the tax managers were looking for some strategy to deal with such a surprising number of retailers at the FBR House. During the entire situation, Shahid Hussain Asad Senior Member IR Policy played pivotal role in cooling down the retailers’ community and assured them that their genuine demands would be met. The retailers, who remained aggressive, were convinced by Senior Member IR Policy to be patient.

Shahid Hussain Asad tackled the situation effectively and ensured the business community that their genuine demands would be met.

Senior FBR Member Tax Policy also convinced the retailers’ community that the changes in the tax procedures can only be done within the specified legal framework and limitations of the tax laws, but FBR will try to resolve their issues. The FBR has also assured the retailers to revisit the retailers rules notified in budget and necessary amendments would be incorporated to simplify the retailers’ registration procedure, if required.

A retailer, who participated in the meeting, told this scribe that the FBR has agreed to amend the SRO-608 and expected to restore old turnover tax scheme for retailers. The FBR will communicate the decision to the retailers in the next 1-2 days in case approved by the policy makers. The FBR has also principally agreed to amend the registration scheme announced in budget (2014-15). A Joint FBR-Business Community Committee was formed for better understanding and better implementation of SRO-608 regarding two tiers of compulsory Sales Tax registration for retailers.