Chambers' view on tax proposals

The business community seems to have taken a totally different approach the question of tax proposals to the Federal Board of Revenue (FBR) for the FY18. At a convention organised by the Karachi Chamber of Commerce and Industry to seek resolution of their issues and problems, all the chambers and associations across Pakistan unanimously decided not to submit budget proposals for the next financial year in order to express resentment against "unfriendly" attitude of the FBR towards business community. Speaking at a press conference, Siraj Kassim Teli, Chairman Business Group, asked the government to immediately stop field formations from attaching bank accounts besides conducting raids on the premises of businesspeople. This community would not protect tax evaders but the staff of the FBR would be required to produce evidence before taking any aggressive action. In a communique issued at the end of the meeting, the Ministry of Finance and FBR were asked to first implement budgetary proposals submitted by them during the last four financial years, which were totally ignored and disregarded. It seems that the new proposals would also be an exercise in futility. The participants also urged upon the authorities to withdraw "draconian" provisions and laws giving immense discretionary powers acquired through last four Finance Bills to the officers of Inland Revenue and field formations. These laws have kept a large number of potential taxpayers out of the tax regime.
The above views of the business community are against the standard practice of previous years and shows their utter frustration over the attitude of the government in tax matters. Their tax proposals before the budget of the next year were firmed up after a lot of meetings among themselves and a great deal of time and effort was involved in finalising their views. Most of the proposals were made to make the tax system less cumbersome and minimise their difficulties by reducing the painful procedures and highhandedness of the tax authorities. While they have been playing their part, the response to their proposals has not been positive. Their claim that all their proposals in the last four years have been ignored speaks loudly about the futility of their exercise. The points raised by Siraj Teli and in the communique are also quite valid. Conducting raids on the premises and attaching bank accounts is a highly punitive action and should be avoided as far as possible to avoid harassment and ensure continuity of operations of industrial units and business concerns. Discretionary powers of the tax authorities are also thought to be excessive. The aggressive laws and arrogant tax officials have in fact hurt efforts aimed at broadening the tax base.
While the proposals of the business community would appear to be right and consistent with reality, it should not be forgotten that no entrepreneur, household and individual, is prepared to pay taxes willingly and diligently. The tax authorities, thereof, often try to achieve their revenue collection targets by resort to draconian measures. Overall, we would urge upon the business community not to resort to the extreme measure of non-co-operation and also advise the government at the same time to listen to their grievances very carefully in order to resolve their issues which have been agitating their minds for a long time. For instance, businesspeople must not be subjected to mental torture and their refunds should not be withheld in order to enable them to increase the productivity. A taxpayer should not be denied interest on refunds unless the delay is caused by the assessee's fault. Some of their complaints may be justified because they are actually working in the field and largely at the receiving end. Hopefully, the government would be able to persuade the businesspeople not to stay aloof but to offer their proposals well in time for the consideration of the government. Their disenchantment with each other would be in nobody's interest and could harm the budget-making process.