KATI hails decision to withdraw FBR’s powers
Association chief says the tax board has created distortions.
"The decision to clear outstanding sales tax refund by August 31, 2015 was another positive decision for the business community," KATI Patron In-Chief SM Muneer. CREATIVE COMMONS
KARACHI:
Korangi Association of Trade and Industry (KATI) has welcomed the government’s decision of withdrawing Federal Board of Revenue’s (FBR) powers to issue concessionary Statutory Regulatory Orders (SRO).
KATI Patron In-Chief SM Muneer said that many discretionary decisions taken by the FBR in the past had created distortions in the taxation system. “This has resulted in discouraging taxpayers to get registered in the tax net,” said Muneer. “Moreover, it has resulted in burdening the existing taxpayers.”
Muneer said the decision to clear outstanding sales tax refund by August 31, 2015 was another positive decision for the business community as it would help in addressing liquidation problems.
KATI President Rashid Ahmed Siddiqui, while commenting on the budget speech by Finance Minister Ishaq Dar, said that taking powers from the FBR and handing over to the parliament is a monumental decision.
Siddiqui said that many steps were announced in the budget that would help in making the economy growth-oriented and investment-friendly. “Tax holiday awarded to the agriculture sector would attract investment besides promote supply chain.
“Similarly, the incentive given to the energy sector was critical as many investors were reluctant to spend in the industry due to high cost,” he added.
He also welcomed the incentives given to the construction sector and urged the government to speed up low cost housing schemes for lower middle class people.
Commenting on the budget, Siddiqui added that several aspects were anti-business. He suggested that the government should think about imposing tax on agriculture income, which was out of the tax system for the past many years.
He said that increasing the cost for non-filers would not result in broadening the tax base. The government should apprehend those tax evaders instead giving them amnesty at certain tax rates.
He added that reducing the number of duty slabs from six to five percent would also prove to be beneficial to the business community.
Published in The Express Tribune, June 9th, 2015.
Korangi Association of Trade and Industry (KATI) has welcomed the government’s decision of withdrawing Federal Board of Revenue’s (FBR) powers to issue concessionary Statutory Regulatory Orders (SRO).
KATI Patron In-Chief SM Muneer said that many discretionary decisions taken by the FBR in the past had created distortions in the taxation system. “This has resulted in discouraging taxpayers to get registered in the tax net,” said Muneer. “Moreover, it has resulted in burdening the existing taxpayers.”
Muneer said the decision to clear outstanding sales tax refund by August 31, 2015 was another positive decision for the business community as it would help in addressing liquidation problems.
KATI President Rashid Ahmed Siddiqui, while commenting on the budget speech by Finance Minister Ishaq Dar, said that taking powers from the FBR and handing over to the parliament is a monumental decision.
Siddiqui said that many steps were announced in the budget that would help in making the economy growth-oriented and investment-friendly. “Tax holiday awarded to the agriculture sector would attract investment besides promote supply chain.
“Similarly, the incentive given to the energy sector was critical as many investors were reluctant to spend in the industry due to high cost,” he added.
He also welcomed the incentives given to the construction sector and urged the government to speed up low cost housing schemes for lower middle class people.
Commenting on the budget, Siddiqui added that several aspects were anti-business. He suggested that the government should think about imposing tax on agriculture income, which was out of the tax system for the past many years.
He said that increasing the cost for non-filers would not result in broadening the tax base. The government should apprehend those tax evaders instead giving them amnesty at certain tax rates.
He added that reducing the number of duty slabs from six to five percent would also prove to be beneficial to the business community.
Published in The Express Tribune, June 9th, 2015.