RECORDER REPORT
KARACHI: Pakistan Tax Bar Association (PTBA) has expressed concerns over pre-suspension notices being issued to taxpayers and aggressive tax collection practices.
In its strong worded letter to the Federal Board of Revenue (FBR) Chairman, Rashid Mahmood Langrial, PTBA highlighted significant operational inefficiencies and enforcement issues that are hampering business activities nationwide.
The letter pointed out growing concerns over pre-suspension notices being issued to taxpayers and aggressive tax collection practices that contradict the government’s stated goals of creating a business-friendly environment. “Despite the government’s push for reforms and digitisation at FBR, the ground realities paint a different picture,” the PTBA stated.
A primary concern raised is the issuance of pre-suspension notices by tax officers who allegedly demand immediate payment of disputed input tax without proper verification. When taxpayers present documentation to justify their claims, officers reportedly bypassed verification procedures and threatened to suspend sales tax registration if payment isn’t made promptly, the letter said.
The association argued this approach “is totally against the claim of the government of providing a conducive environment to do business” and called for adherence to proper verification procedures under Section 11 of the Sales Tax Act before any suspension actions are taken.
PTBA further said that Chief Commissioners’ offices were also delaying the representations process against sales tax registration suspensions, causing to halt business operations for long.
PTBA also recommended implementing an IRIS portal-based system to make the timeline and outcomes of such representations transparent. Additionally, the association pointed to specific delays at the Chief Tax Office in Karachi, where the Commissioner responsible for approving non-profit organisation status and various fund exemptions under tax laws is “rarely seen,” causing significant delays and increasing tax burdens for legitimate organizations seeking exemptions.
The Tax Bar has requested urgent intervention from the FBR Chairman and asked for official directions to be issued to field offices to address these concerns.
