Government urged to reorganise taxation system

Finance Minister, Commerce Minister, Federal Board of Revenue and the representatives of processing sector will be brought to negotiation table to settle their differences, said Aamir Ata Bajwa, Senior Vice President Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
He was addressing a joint press conference addressed by the textile associations of Faisalabad here on Tuesday.
He said that on one side government is offering textile package of Rs 180 billion while on the other side, the government institutions are damaging the industrial sector. He said that the finance minister and tax officials should realise that taxpayers are the precious asset of country with contribution of Rs 3100 billion revenue as tax paid during last year. He asked FBR to look at new taxpayers instead of tightening the noose against the neck of existing taxpayers.
He urged upon government to reorganise the taxation system, adding that tax was not the core issue but it is the procedure through which the tax is being extorted from the business community. He warned and said, "We would not allow any body to create harassment in the garb of 38-A and 40-B of Sales Tax Act 1990." He was optimistic to convince the government to come on negotiation table and resolve this issue on permanent basis.
Earlier, President FCCI Engineer Muhammad Saeed Sheikh said that we should give at least 10 to 15 days notice before launching any protest. He also explained in detail the joint declaration of 9th Chambers Presidents Conference held in Bhurban and said that it has proposed that only member FBR should be empowered to exercise these clauses as its use by the Regional Tax Office is creating harassment among the business community.
Chairman APTPMA Hafiz Ihtasham Javed criticised the use of these controversial powers of Sales Tax Act and told that notices are also being issued to the textile processing units to submit their special returns in which names, CNIC's and addresses of the non-registered parties are being demanded despite of the fact that they are already paying 2 percent extra sales tax on behalf of their non-registered parties. He demanded that all these notices should be withdrawn immediately. He told that the processing industry has unanimously decided to close down their factories from February 06 and launch a protest rally if their demands were not accepted.
The meeting was also addressed by SVP FCCI Rana Sikandar Azam, Mian Javed Iqbal, VP FCCI Engineer Ahmad Hasan, Sheikh Khalid Habib, Talib Hussain Rana, Waheed Khaliq Ramay and Chaudhary Abdul Haq of APCPLA. Later, the workers of processing units also staged a protest rally on the canal road.