FBR will collaborate with KATI to identify, enroll non-filers: CC IRS

KARACHI: The Federal Board of Revenue (FBR) will collaborate closely with the Korangi Association of Trade and Industry (KATI) and other trade bodies to identify and enroll tax non-filers, announced Ahmed Kamal, Chief Commissioner (CC) Inland Revenue Service (IRS), Medium Taxpayer Office (MTO), during a visit to KATI.

Addressing industrialists, Commissioner Kamal confirmed that Ahmed Mukhtar Shahani is being appointed as the Focal Person at KATI to ensure the swift resolution of issues within the Korangi Industrial Zone.

The Chief Commissioner emphasized that the FBR’s core mission is to facilitate compliant taxpayers, not to harass them, and he vowed to take stringent action against any FBR officials against whom industrialists lodge direct complaints of corruption or harassment.

He stated that tax issues can be successfully resolved through the cooperation of trade associations, whose input is crucial for bringing non-compliant citizens into the tax net. In collaboration with KATI, conduct awareness seminars to guide small manufacturers and traders on filing requirements, compliance procedures, and proper documentation.

Commissioner Kamal requested the industry, through KATI, to propose a specific duration for the required extension.

On the subject of audits, he clarified that the FBR is not launching new audit drives but is focused on completing existing, pending audit cases.

He also addressed past staffing shortages by mentioning that a new scheme is in place to appoint more auditors, which will significantly improve efficiency.

Muhammad Ikram Rajput, President of KATI, highlighted the escalating seriousness of the digital invoice issue, noting that submissions are incomplete despite the deadline. He requested the FBR to grant a further extension for compliance and called for a review of tax rates to align with regional competitors, along with the necessary digitalization of the Customs and Sales Tax systems.

Zubair Chhaya, Deputy Patron-in-Chief of KATI, expressed concerns that the FBR is disproportionately pressuring existing taxpayers who have been compliant for decades while neglecting the large population of non-filers.

He suggested that many industrialists are now considering non-resident status by spending the required 184 days abroad. He urged the government to eliminate non-filer status and concentrate on expanding the tax base.

Tariq Malik, Chairman of the Standing Committee, echoed this, arguing that increasing targets without addressing non-filers will not boost revenue and will only further burden the existing tax base, advising the FBR to prioritize action against the substantial number of non-filers and those submitting zero-returns. KATI’s Senior Vice President Zahid Hameed, Vice President Muhammad Talha, and other members were also present, contributing their suggestions to the FBR team.

Copyright Business Recorder, 2025