Income tax relief: K-P contractors’ body threatens sit-in outside parliament

Say govt served notices, asking them to pay taxes in retrograde

PESHAWAR: The Khyber-Pakhtunkhwa (K-P) contractors association has threatened to hold a sit-in outside Parliament House if the federal government withdrew income tax relief going back three years.

The demand was made by contractors’ association president Haji Ghulam Habib during a news conference at Peshawar Press Club on Wednesday. The association also demanded K-P contractors be given due share in projects initiated for China–Pakistan Economic Corridor.

The income tax relief was provided by former prime minister Yousaf Raza Gillani for years 2010, 2011 and 2012 following mass destruction caused by floods, earthquake and terrorism incidents in K-P.

Habib said the federal government has served notices and asked businessmen, contractors and industrialists to immediately pay tax for 2010, 2011 and 2012. He termed the move an injustice to the businessmen and demanded the federal finance minister Ishaq Dar to issue directions and restrain FBR officials from collecting income tax.

In retrospect

According to the association president, the government refunded income tax of only one project during the three years in question, while only 6% relief was provided on other projects. Now contractors and businessmen have been asked to pay 7% to the government on the total amount allocated for projects which was completely unjustified.

Habib said, “While returning the income tax, officials pocketed a huge sum and gave us 70% or less of the refunded amount.”

He added, “The government should collect tax on 10% income earned by contractors and not on the total amount allocated for a project.” Habib warned they will protest outside Parliament House if the government did not withdraw the notices.

Published in The Express Tribune, January 14^th, 2016.