CNIC and GST issues: NA body on finance to furnish recommendations: FCCI chief

Subcommittee of NA standing committee on Finance, Revenue and Economic Affairs will submit its final recommendations regarding CNIC and GST issues during next week, disclosed Rana Muhammad Sikandar-e-Azam Khan, President Faisalabad Chamber of Commerce & Industry (FCCI).

After attending a meeting of this subcommittee, he opposed the mandatory provision of CNIC and GST on five major export sectors which are the main cause of current slump in the economic activities. The subcommittee was chaired by Ramesh Kumar while Madam Ayesha Ghaus Bux and Nafeesa Shah attended it as its members. Rana Sikandar-e-Azam represented the business community of Faisalabad along with Engineer Ehtsham Javed chairman All Pakistan Textile Processing Mills Association (APTPMA), its secretary Muhammad Ashraf and Rana Ikram Ullah executive member FCCI in addition to Madam Seema Shakeel member FBR, Javed Balwani chairman PHMA, Karachi.

Rana Sikandar told the subcommittee that FCCI members are already registered with the FBR and are paying their due taxes but the government departments in order to expand the tax net are using them as bait. He clarified that it is the sole responsibility of tax officials to dig out new tax payers by themselves but they are putting their responsibility on others.

He further said the FBR has enforced these conditions without considering their negative or positive impacts. He said that as a result of these conditions the overall businesses are facing worst type of slump. He also indicated that the tax chain is incomplete and honest businessmen are facing multiple problems not only from their sellers and buyers but also facing undue pressure from the government departments.

further said the businesses could be segregate into manufacturing, agency holders, dealers and retailers. The government could easily collect GST which is a consumer tax at the manufacturing stage but it has created harassment among all the four tiers. He proposed that the government should only demand CNIC from manufacturers and agency holders at this stage. The remaining two tiers may be exempted from this condition for next two to three years. The government and tax officials should ensure 100 percent recoveries by plugging all loopholes in the system, he added.

"It will be an easier task to mount surveillance on a few 100 manufacturers and their agency holders", he said.

The NA subcommittee appreciated the positive stand of FCCI and excellent presentation by its president.

The chairman subcommittee assured that it would present its final recommendations to the NA standing committee on Finance, Revenue and Economical Affairs very soon.