SRO 821(I) 2011, rate of turnover tax: FBR chairman assures businessmen of review

The Acting Chairman of Federal Board of Revenue Mumtaz Haider Rizvi has promised to review SRO 821(I) 2011 and high rate of turnover tax in consultation with the stakeholders. He was talking to a seven-member delegation headed by LCCI president Irfan Qaiser Sheikh.
The acting chairman said that the Federal Board of Revenue wanted to broaden tax net through facilitating the business community, assuring that no anti business policy would be adopted in this regard. Since the business community had reservation over SRO 821 (I) 2011 and high rate of turnover tax, therefore the FBR was ready to discuss these issues with the stakeholders, he further said.
LCCI president Irfan Qaiser Sheikh informed the chairman FBR that the SRO 821(I) 2011 was impractical so it should be withdrawn without any further delay. He observed that formulation of policies without due consultation of the stakeholders was sheer injustice. He said that the FBR should have initiated the process of consultation with the private sector for true implementation of all the policies.
He said that the SRO 821(I) 2011 would have devastating effect on businesses in Pakistan as the compulsory requirement of NTN or CNIC number of each and every purchaser or seller was practically almost impossible. Due to low literacy rate in the country and lack of compliance culture in general masses, it would be very difficult to obtain such personal details from the buyers or sellers of the goods, he maintained.
Sheikh said that the said SRO would strangle the already crisis-hit businessmen in the country. He said the Lahore Chamber felt that the Federal Board of Revenue was shifting its burden of monitoring and tracking of the tax system to business community, which was unjust and unethical.
Earlier, Irfan Qaiser Sheikh urged the FBR Acting Chairman to bring down the turnover tax to 0.5 percent from existing 1 percent at earliest. It would be a great relief for the business community of the country, which is doing business somehow in the presence of multiple challenges including massive energy crisis and high input cost.