Arrest for concealment of income: FPCCI slams Section 203A proposed by FBR in budget

KARACHI: Mian Nasser Hyatt Maggo, President FPCCI Tuesday slammed the proposal of Section 203A by FBR in the Federal Budget 2021-22, which gives powers of arrest and prosecute any person for concealment of income to Assistant Commissioners of Inland Revenue Service merely on the basis of an accusation or doubt.

Mian Nasser Hyatt Maggo said income tax is a civil liability and could not be treated as a criminal liability; and this has always remained a civil matter historically. Section 203A opens doors to harassment of business, industry and traders' community.

Maggo said the Section 203A will add to the already existing harassment of businessmen by tax officials through issuance of several thousand notices of which Shaukat Tarin, Federal Finance Minister has taken notice and his timely intervention has resulted in withdrawal of big number of notices issued to businessmen.

Maggo said businessmen must be respected for generating taxes and employment for the country. The business should be conducted in harmony instead of conflicts and contradictions created by the tax officials - resulting from strengthening of their discretionary powers.

Maggo said the Section 192A (Prosecution for Concealment of Income) of the Income Tax Ordinance 2001, already covers the subject sufficiently.

Copyright Business Recorder, 2021