Request to limit WHT monitoring to two years declined: ABAD urged to support FBR in achieving 15pc tax-to-GDP ratio

KARACHI: Chief Commissioner Aftab Alam of the Medium Taxpayer Office (MTO) Karachi has called upon the Association of Builders and Developers of Pakistan (ABAD) to support the Federal Board of Revenue (FBR) in achieving a 15 percent tax-to-GDP ratio rather than requesting for a relief.

The statement came during a high-level meeting between FBR officials and ABAD representatives, where Chairman Hassan Bakshi presented several requests on behalf of the developers’ association.

During the discussions, Commissioner Alam, accompanied by Commissioner Income Tax Zafar Rafiq, declined ABAD’s request to limit withholding tax monitoring to two years. Instead, the officials advised builders and developers to file quarterly statements to avoid notices under Section 161 of the laws.

“We need your support in tax compliance to increase the tax-to-GDP ratio from the current 9 percent to 15 percent,” Commissioner Alam stated.

“This increase is essential to avoid annual borrowing. If we can achieve a tax-to-GDP ratio of 17 percent, similar to India, we will be able to address our external debt challenges. The Armed forces have done their job, now we have to pay our legal duty,” he added.

Earlier, Chairman ABAD Hassan Bakshi covered several agenda items, including notices under section 161 and 176, tax refund adjustments, extension for completion of 100D projects, and the revisiting of valuation tables. ABAD also requested the appointment of a focal person to address their concerns.

Commissioner Alam noted that the FBR had already assigned two commissioners specifically to resolve ABAD-related issues, making the appointment of additional focal persons unnecessary. He advised chairman ABAD that issues should be resolved in Karachi rather than escalated to Islamabad.

In response to concerns about bank account attachments, the chief commissioner clarified that such measures account for only 2 percent of the MTO’s total revenue collection efforts.

Copyright Business Recorder, 2025