FBR Chief assures rectification of FBR policies, urges strong partnership for more revenue

KARACHI: Chairman, Federal Board of Revenue, Tariq Mehmood Pasha on Tuesday emphasized on strengthening partnership between FBR and the business community for economic growth and development of the country through better interaction and confidence, instead of complaining of each other.

"Tax collection cannot grow without due consultation with you people.

You are the engine of the economy. I assure you every possible facilitation," he re-affirmed while speaking at an interactive session with the members of Karachi Chamber of Commerce and Industry, at the chamber.

Prominent on KCCI side were President Muffasar Atta Malik, Senior Vice President Abdul Basit Haji Abdul Razzaq, Vice President M. Rehan Hanif, former presidents M. Zubair Motiwala, Shamim Ahmed Firpo, Haroon Farooqui, Haroon Agar, Anjum Nisar, Tahir Khaliq and Abdullah Zaki, and former senior vice president Majeed Memon.

FBR Chairman advised the KCCI leadership to form a committee of tax experts to engage with FBR for the review/ rectification of the policy on the most priority issues of the business community especially affecting KCCI members, along with the proposed practical solutions.

"It is not practical to listen to a large number of business community members. Instead, I along with a team of senior officers of FBR can sit with your representative committee, which has done good home work before the meeting, for resolution of the issues at least those of urgency and collective nature," he asserted adding that he wanted due interaction with all the major chambers of the country.

Pasha agreed to the KCCI leadership that FBR's audit procedure had certain lacunas and assured of the immediate rectification to facilitate and build confidence among the tax-payer businessmen and encourage new ones. He invited proposals from Karachi Chamber for the same.

To a question, he said FBR had started working with Sindh Board of Revenue - set up after 18th amendment in the constitution. However, he said, it would take time to streamline the things.

He said that over last four months, there was significant increase in domestic sales tax collection and same was expected in income tax collection. There was also increase in exports over last five months and 26 percent increase in filing of returns in comparison of the last year. And, he continued, this credit went to the business community who acknowledged and supported the government efforts for revenue generation.

On pointation, FBR Chief assured of relief by admitting that there were some wrong entries on the list of 711 items, on which regulatory duty was recently imposed.

"Yes, some items including raw materials have wrongly been included in this list," he remarked.

On raising reservations on the discretionary powers given to the FBR tax collectors, FBR Chairman assured that he would ensure the minimum use of these powers, which were not welcomed by the business community.

Tariq Mehmood Pasha urged the KCCI leadership to come up with the proposals for the country's annual budget 2018-19, not only for promotion of trade and industry but for the prosperity and development of the country.

FBR Chairman regretted the KCCI President's demand for extension in the last date for filing of tax returns up to December 31; maintaining that there was justification to further the date.

Responding to complaints by KCCI members about the non-cooperation and unnecessary pressure on the taxpayers, FBR Chairman summed up the debate with strong note:" All is not good on FBR side and same is the case with you, business community. We all should fulfill our responsibilities, and respect and facilitate each other's job."

Besides KCCI President Muffasar Atta Malik and former president KCCI Muhammad Zubair Motiwala, senior businessmen representing different sectors of the economy raised tax and customs related issues, which were duly answered by the FBR Chairman.