Commerce, industry chambers want FBR to back off

All trade bodies strongly denounce misuse of discretionary powers

LAHORE: Members of leading chamber of commerce and industries have expressed their annoyance at the Federal Board of Revenue’s (FBR) staff.

Nearly all chambers of commerce and industries of Pakistan along with other powerful business lobbies have demanded FBR executives to immediately withdraw the discretionary powers the tax collecting agency has gained in shape of different SRO’s.



They further gave a deadline of April 10 to the FBR and have stated that they will hoist black flags and office bearers, along with executive committees, will bear black bands till the deadline.

“Businessmen are working in difficult conditions but instead of respecting them, the FBR staff is twisting their arms and blackmailing them, therefore, discretionary powers should be withdrawn immediately,” said a declaration, which includes the opinions of Lahore, Karachi, Peshawar and other key chamber of commerce and industries.

Along with the chambers, nearly all powerful lobbies representing textiles, steel, footwear, tanners, rice, builders and developers participated in the convention.

All chambers and trade bodies strongly denounced the misuse of discretionary powers by the officers of IR under Sections 38A, 38B, 40A, 40B, 176 and 177. They also urged the government to withdraw these sections immediately and restrict the enforcement of the said sections.

The convention urged the government to withdraw the draconian provisions and laws giving immense discretionary powers acquired through the last four finance bills. These laws have kept a large number of potential taxpayers out of the tax regime. In fact these laws are a deterrent to broadening of tax-base and have promoted the culture of tax-evasion.

Lahore Chamber of Commerce and Industry (LCCI) President Abdul Basit said that during the last three years, tax collection has increased about 60% whereas number of persons who filed tax returns has almost decreased by 200,000. It simply reflects that the FBR could not succeed in broadening the tax net, resulting in squeezing existing tax payers. Revenue collection through indirect taxes is almost 62% of the total tax collection, which could be encouraged, said Basit.



“Pakistan lacks culture of tax compliance due to an unfair taxation system. Harmful taxation that hinders business and trade in the country should be eliminated.”

Basit reiterated that the FBR should stop harassing filers as non-filers and the ones outside the tax-net are not accounted for at all which discourages businesses to come into the tax-net.

Published in The Express Tribune, March 23^rd, 2017.

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