Tax collection: Industrialists protest FBR ‘harassment’

Say RTO collecting taxes at gunpoint

FAISALABAD:

Hundreds of traders on Wednesday observed a partial strike and scores of industrial workers, mill owners and labourers staged a protest demonstration against the proceedings initiated by the Federal Board of Revenue under Sections 38 and 40-B of Sales Tax Act.

The protest was organised by the All Pakistan Textile Processing Mills Association (APTPMA).

APTPMA leaders, Faisalabad Chamber of Commerce and Industry (FCCI) members and Council of Loom Owners Association (CLOA) had announced the strike on May 11.

The FBR officials had declared the strike unjustified and said they had detected sales tax evasion to the tune of Rs1,188 million and registered eight cases against some businessmen.



Trade bodies were divided over the issue, resulting in a partial strike at the markets near Clock Tower Chowk. A group of traders backed by Anjuman Tajiran City continued their business activities.

The protesters, riding mills vehicles, gathered in large numbers at Zila Council Chowk where they staged a sit-in.

They were holding banners and placards and chanted slogans against the FBR over initiating proceedings under Section 38 and 40-B of Sales Tax Act.

Addressing the protesters, APTPMA chairman Khalid Habib said harassment of businessmen under Sections 38 and 40-B of the Sales Tax Act was unacceptable.

He said in December last year, the Regional Tax Office (RTO) had requested the textile processing industry to enhance sales tax. He said after a series of meetings a procedure was decided for the enhancement. Under this agreement, he said, the industrialists had paid Rs55 million.

He said later, the RTO had started harassing mills by sending them “unfair” tax notices.

He said in some cases industrialists were summoned to the RTO’s office where they were “forced to pay tax at gunpoint”.

He said that businessmen were ready to pay taxes but taxes should be collected under the procedure decided between RTO and traders.

CLOA chairman Waheed Khaliq Ramay said the FBR should broaden the tax net instead of imposing more tax on existing taxpayers.

The speakers termed Sections 38 and 40-B of the Sales Tax Act black laws and said that they would not pay taxes to the government at gunpoint.

They also demanded that tax authorities for abolish these clauses immediately.

They said they would stop trade and industrial activities in the city if the government did not accede to their demands.

“If our demand are not met, we will lock our mills and factories and more than 700,000 factory workers will come  and protest on the streets roads,” they said. They said they could halt business activities in the country if their demands were not met.

Published in The Express Tribune, May 14^th, 2015.