Pakistan Hardware Merchants Association (PHMA) has said the SRO 821(I) 2011 will not only strengthen black economy but it would also lead to corrupt practices in the country therefore the Federal Board of Revenue (FBR) should immediately withdraw the said SRO.
According to PHMA spokesperson, these views were expressed by Central Chairman Pakistan Hardware Merchants Association Sardar Usman Ghani and Chairman Northern zone Ahmad Dawood while talking to a delegation of Hardware markets comprising Brandreth Road, railway road, Rehman Gallian, Dil Mohammad Road, Landa Bazar, Circular Road Beadon Road and Bull Road, here on Tuesday.
Ghani informed the delegation that the Central Vice Chairman of PHMA Tariq Rashid phoned him from Karachi urging him to raise voice against the SRO 821 (I) 2011 that would have very devastating effect on the businesses all over the country. He further said that the SRO 821 (I) 2011, issued without consultation of the business community, will deprive the government of much-needed revenue as it would strengthen the hands of unregistered businessmen as for the registered businessmen the compulsory requirement of NTN or CNIC number of each and every purchaser or seller is practically almost impossible.
The central chairman PHMA said that by issuing the said SRO, the Federal Board of Revenue (FBR) has given the impression that it was unable to bring more people into the tax net and is actually shifting its burden of monitoring and tracking of the tax system on the business community which is unjust and unethical.
"If the FBR was interested in broadening of the tax net, it must bring the other untaxed sectors into the tax net instead of creating troubles for the registered persons who were already doing businesses in the presence of multiple internal and external challenges."
It was very difficult to understand that why the people sitting at helm of affairs at the FBR did not consult the Chambers of Commerce and Industry in the country before issuing SROs or formulating business related policies, Ghani said.
He urged Federal Finance Minister Dr Abdul Hafeez Sheikh to help withdraw the SRO 821 (I) 2011 because if such changes will be brought in the returns then coupled with the prevailing worst economic conditions the business community will have no other option but to wind up their businesses. Ghani said that PHMA and all the chambers and trade associations are in contact and a future line of action would be drawn very soon.
The SRO 821 (I) 2011 issued on September 6, 2011 says, "in exercise of the powers conferred by first proviso to sub section (1) of section 23 of the Sales Tax Act, 1990 read with sub-section (3) of section 18 of the Federal Excise Act, 2005, the FBR is pleased to direct that in case of registered manufacturer, importers and exporters, making taxable or duitable supplies to unregistered persons, shall issue an invoice containing "computerised National Identity Card number of National Tax Number of such unregistered person."