RECORDER REPORT

KARACHI: The refund payment through promissory notes will be commenced by April 2019, the FBR chairman said.

Addressing the business community at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during his maiden visit to Karachi, Dr Jehanzeb Khan said that all modalities have been finalized and refund payment through promissory notes would begin by next month.

He said that two third of the refunds would be paid through promissory notes while the rest would be given through cash refund system as payment of total refunds in one go would create revenue shortfall, which was presently hovering around Rs220 billion. He also vowed to overcome revenue shortfall and achieve annual revenue budgetary target in next four months.

He restrained field formation of the FBR for conducting raids on business premises and residences of businessmen. He stressed upon the FPCCI to ensure compliance of show-cause notices issued to their members.

While announcing to visit Karachi twice a month, Dr Jehanzeb assured to resolve operational issues of business community; saying that the FBR was striving to ease tax payment system and for the purpose, the board was developing an automated system to minimize man-to-man interaction at tax offices in order to eliminate harassment issues.

He said the FBR was now amalgamating all digital data including Nadra data with its system to identify potential taxpayers, who made frequent visits, purchased luxury cars and paying hefty education fee of their children but still remained out of tax ambit.

He said the FBR had recovered Rs1.75 billion out of Rs3 billion tax demands by issuing notices to 6,000 non-filers, identified through digital data and added that this automated system, which would be enforced in next two years, would help the FBR enter into next generation of tax collection for the country.

Chairman FBR said the government was now trying hard for macro economy stabilization and talks with the International Monetary Fund (IMF) were also in progress. He urged the business community to come forward and help the board in this regard.

Dr Jehanzeb Khan, who was accompanied by FBR team announced to constitute a joint liaison committee of FBR officials and FPCCI members to facilitate business community in resolving issues. He said that focal person would be nominated in FBR to coordinate with chairman FBR and FPCCI and take stock of issues and problems of trade and industry and added that tax policy, which had not been existed for last 70 years, was now being evolved to streamline taxation system.

In his welcome address, Engr. Daroo Khan Achakzai, President FPCCI highlighted precarious economic situation and said that Pakistan was passing through a transitory period and radical revolutionary reforms were being made in all sector of the economy including taxation. He said that government efforts of curtailing imports and levying regulatory duty on imported items have resulted in slashing imports and consequently declining in revenue collection.

He said that previous system of levying penalty on daily basis be restored instead of declaring late filers as non tax filers and excluding them from active tax payer list.

Dr. Ikhtiyar Baig Senior Vice President FPCCI proposed to increase tax net and suggested to activate Alternative Dispute Resolution Committees to realize Rs. 38 billion of taxes lying pending in various courts for decisions. SVP FPCCI urged the FBR to encourage direct taxation system instead of indirect taxes which is very regressive in nature and a main cause of increase in inequality.

The meeting was attended by Vice Presidents FPCCI Muslim Muhammedi and Arshad Jamal, Zubair Tufail Former President FPCCI, Syed Mazhar Nasir, Advisor to President and Former Sr. Vice President FPCCI and others.

Dr. Jehanzeb in his visit to Karachi Chamber of Commerce and Industry (KCCI) said that in order to meet FATF requirements, which were also in national interest as well, currency declaration kiosks had been installed at 24 airports of the country and FBR had so far taken two airlines- Emirates and PIA for advance passengers’ information.

Furthermore, he said that FBR had now been empowered to confiscate Benami properties and accounts under Benami Transaction (Prohibition) Rules 2019 and added that such cases would be dealt under the rules.