Parts makers slam FBR’s move to freeze accounts

Say freezing of bank accounts will create trust deficit, reduce investment

LAHORE:

The Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has opposed the Federal Board of Revenue’s (FBR) recent decision of allowing taxmen to freeze bank accounts of tax defaulters without notifying the accountholders.

In a statement on Saturday, Paapam Chairman Abdur Razzaq Gauhar appealed to the government to withdraw the new policy, which he termed an “anti-industry step”.

The government should aim to introduce measures and incentives for promoting industrialisation, he said, adding that the FBR’s move of freezing bank accounts was totally harmful for businesses and could be misused.

He was of the view that such punitive action against the business community would create a trust deficit, thus reducing investment in the country.

Gauhar emphasised the need for a consistent and long-term policy for national growth to enhance the trust among the business community. “Taxes are a must to run the affairs of the government but they should be imposed according to the ground realities,” he said.

There was an urgent need for reforming the taxation system in consultation with the stakeholders, besides addressing the issue of double taxation through integration of provincial and federal government laws and harmonisation of FBR and Punjab Revenue Authority (PRA) taxes, he said.

Gauhar suggested that taxes should be charged one time by either the provincial or federal government, as both of them collected the same kind of taxes, which escalated the cost of production and discouraged the registered manufacturers.

He demanded that the government improve tax structure so that business and investment could flourish in the country, as the existing tax structure discouraged investment.

The government should focus on reducing tax rates and expanding the tax base by bringing all exempted sectors to the tax net, he said.

Published in The Express Tribune, October 17^th, 2021.

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