LAHORE: Lahore Chamber of Commerce and Industry President Irfan Qaiser Sheikh has urged the Federal Board of Revenue to immediate withdraw SRO 821.
In a charter of proposals to the FBR, he said, there is no need for Annex F and H attached with Sales Tax Return. Besides the PRAL system of e-filing needs urgent improvement to make it user friendly.
In case where tax payers have not been able to complete online returns as a result of this problem, no penalty should be imposed on account of non-filing of ST return for the period of August and September.
"We demand that tax return forms should be simplified as promised by FBR on many occasions," he added.
He said difficulties in registering with the Sales Tax Department are impeding the efforts of the government to document the economy. The Rule 5 sub-rule (4) of Sales Tax Rules, 2006 for import of machinery by new manufacturers is being misinterpreted by FBR officials. Therefore, a clear and unambiguous procedure is laid down to tackle the situation.
Under SRO 283 of 2011 input tax should be allowed, in case of taxable supplies at the rate of 4 percent and 6 percent, as this denial amounts to double taxation.
He also called for curtailing the high rate of corporate taxes to encourage new investment.
Imports through T.T. should be strongly discouraged in order to promote documentation of the economy.
With regards to the turnover tax, its increase to 1 percent from 0.5 percent for all sectors has created an unnecessary irritant, therefore, it needs to be reversed to the previous rate of 0.5 percent.
The LCCI President also urged the FBR to improve the system of tax refunds. He said a computerized system of CARE/PACCS was only installed at Karachi while another system was used at all other ports of the country.
Similarly, valuation formulas at Karachi port vary as compared to those for the rest of the country. It is demanded that such anomalies be removed. The sufferings of the organized and documented sector caused by continuous and unchecked flow of smuggled goods are destroying businesses.
The business community also feels that the custom laws with regards to smuggling and under-invoicing at ports is not up to the mark.
Pakistani exporters and importers face many difficulties at the Wagha border, as over and above customs there are other departments like NLC and Rangers are involved. Therefore a uniform SOP with the consultation of all the concerned departments be made to ensure smooth business with India.
The country is experiencing an unprecedented de-industrialization because valuable industrial raw materials are being exported. The pet bottle scrap which is a raw material for regenerated polyester fibre is being exported to China and at the same time 50 percent duties and taxes are imposed on it at the import stage. This needs to be rationalized to save the local industry, he added.
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