recorder report

ISLAMABAD: The anomaly committee of the Federal Board of Revenue (FBR) Tuesday finalised a list of 146 grievances, which were raised by business community, associations, chambers, trade bodies, individual companies and investors, pertaining to the income tax, sales tax, excise duty and customs duty related issues in the Finance Bill 2019.

As a result of negotiations between the business community and FBR on Tuesday, the government may amend the biggest Sales Tax documentation measure of seeking CNIC number of unregistered buyers. The CNIC number may be asked on transactions of over Rs 50,000.

Over 120 leading trade bodies, associations, chambers, investors, corporate firms and representatives of business and trade submitted their budget anomalies to the anomaly committee of the FBR under the Finance Bill 2019. This is the highest number of associations and chambers which ever visited the FBR in a single day. In many cases, individual companies also came to the FBR House for addressing their grievances in the Finance Bill 2019.

The FBR House from ground floor to third floor was full of visitors and everyone had its own grievances against the Finance Bill 2019 and was unhappy with the budget. Despite a large number of taxpayers visited the FBR in a single day, the FBR/anomaly committee effectively handled the visitors well and there was no complaint on part of the visitors.

The meeting of the anomaly committee chaired by Ashfaq Tola continued throughout the day at the FBR House to identify and remove the technical and legal anomalies in the Finance Bill 2019.

According to sources, the anomaly committee has heard the grievances of over 125 representatives of different associations and bodies including companies and local/foreign investors. After finalisation of 146 grievances, the anomaly committee would submit its report to the chairman FBR on Wednesday (today).

Sources said that the anomaly committee would scrutinise each and every grievance and recommend necessary changes in the Finance Bill 2019 in viable cases. On Wednesday (June 26), the committee would review the entire list of grievances submitted by the business community.

Keeping in view extraordinary number of businessmen coming with their grievances to the FBR, the anomaly committee divided visitors into three different groups to submit their grievances. The first committee-A was headed by Ashfaq Tola, Abid Shaban led the second committee-B and third committee-C was headed by Abdul Qadir Memon.

"We have distributed the work among three committees and each committee handled around 40 associations, trade bodies and representatives of business and trade to ensure completion of the job by Tuesday (June 25)," said Ashfaq Tola.

He informed that the anomaly committee would give best possible solution of the anomalies to the FBR chairman for resolving the issues raised by the taxpayers.

The three committees heard the viewpoint of wide range of sectors and companies including fertilizer companies, telecom companies, petroleum companies, banks and cement manufacturers. Fertilizer Importers Council, All Pakistan Fertilizer Dealers Association, Towel Manufacturers Association, Pakistan Association of Large Steel Producers, Travel Agents Association of Pakistan, and Pakistan Chemist and Druggists Association also submitted their grievances to the respective anomaly committee.

The three committees (A-B-C) heard the grievances of PSX Stock Brokers Association, Oil Companies Advisory Council, Pakistan Yarn Merchants Association, Pakistan Banks Association, Pakistan Software Houses Association and Pakistan State Oil Company Limited.

One of the major grievances was imposition of the condition of providing CNIC number on supplies to unregistered persons under Sales Tax Act 1990. Through an amendment in the Finance Bill 2019, the government is planning to exempt the condition below Rs 50,000 transactions from the requirement of providing the CNIC number. The government may ask for the CNIC numbers of buyers above Rs 50,000 limit transactions.

On the issue of raids at the residential premises or private houses, the anomaly committee assured that the government has decided to withdraw this power from the FBR in the Finance Bill 2019.

After receiving a large number of complaints against withdrawal of restriction of single audit in three years, the anomaly committee assured that guidelines would be issued to address the issue. The government may restore single audit in three years period under the amended Finance Bill 2019.

The anomaly committees also received complaints that the Finance Bill 2019 has increased the minimum general turnover tax from 1.25% to 1.5%, which needs to be reduced.

Former President Karachi Chamber of Commerce and Industry Anjum Nisar told Business Recorder that over 60-70 percent anomalies were submitted by business community of Karachi. It is encouraging to note that the anomaly committee heard the viewpoints of businesses and trades patiently.

The requirement of the CNIC from the buyers should be deferred for 3-6 months to further discuss the issue. The sellers should not be made withholding agents on behalf of the government. The condition should be implemented in phase-wise manner. However, FBR Chairman Shabbar Zaidi has assured that the sellers would not be held responsible in case wrong CNIC number is submitted by the buyers. In case of forged CNIC numbers, the sellers would not be held responsible or prosecuted.

Anjum Nisar said that the government has also agreed to review the capital gain period on immovable properties on the basis of holding period of property under the Finance Bill 2019.