KARACHI: President KCCI Muhammad Haroon Agar has demanded that all SROs and changes made in rates of Sales Tax, Income Tax and rules introduced after Dec. 31, 2012 must be held in abeyance and their implementation should be deferred until consultations are held with all stakeholders, chambers and trade bodies.
During a meeting with FBR Member Inland Revenue Operation, Muhammad Raza Baqir, here at his office, the business community of Karachi have demanded withdrawal of three Statutory Regulatory Order (SROs) -- Nos. 212(I)/2013, 154(I)/2013 and 98(I)/2013 -- describing them as harmful to economic activity in the country.
Leadership of Karachi Chamber of Commerce and Industry (KCCI), in a statement here on Wednesday, alleged that Federal Board of Revenue (FBR) had not duly taken on board major trade bodies before issuing these SROs. The SROs issued one after another would add to the sufferings and multiple problems already faced by the business community in the city, he said
FBR Member Inland Revenue Operation, Muhammad Raza Baqir assured the KCCI President that FBR cannot ignore KCCI and would look forward to the KCCI's proposals on SROs recently issued for consideration and necessary changes in the forthcoming budget.
He was of the view if Chambers/Associations may take the responsibility and verify the genuine cases, the FBR can release refund claims and relevant system can be installed at KCCI.
He said that tax-to-GDP ratio was very low. Out of 180 million population, the tax-payers percentage was only 0.7 percent. 25 percent revenue is collected from taxes levied on petroleum products.
He stated that 50 percent of the exports were from textile sector which is zero-rated. There were 130 to 140 items falling under zero-rating.
He said that the refunds were on higher side than collections which point out loopholes in FBR system.
He said that FBR had collected data of 6 million tax-evaders to whom notices will be served. Their names would be made public under " name and shame programme" if they do not pay the minimum taxes under amnesty scheme.
He said that FBR has no choice but to give amnesty and the department does not hold the capacity to handle new 6 million tax-payers.
Former President KCCI Majyd Aziz, Senior Vice President Shamim Firpo, Vice President Nasir Mehmood and the Managing Committee Members and KCCI's members from trade and industry particularly from textiles, chemicals and yarns also participated in the meeting.
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