KARACHI: Federal Board of Revenue (FBR) has been urged to amend sales tax laws related to posting of Inland Revenue officers at premises of a registered persons for monitoring sales and production.
In its budget proposals for 2017/2018, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that the FBR or the Chief Commissioner has been vested with the discretionary power to post Inland Revenue Officers at the premises of the registered person, monitor production, sales of goods and stock position etc.
The FPCCI said that such discretionary powers are out dated and create a perception of anti-business and anti-investment government policies and create harassment.
It further said that in the modern era of computerization and available methods of monitoring the entire supply chain, and production capacity of each industry with such harsh provisions are unnecessary.
Further, it encourages direct contact between a taxpayer and tax collector which is against the government policy as it leads to corruption and tax evasion. Besides, it is revival of supervise clearance scheme of central excise, in Sales Tax Act, 1990. The Section 40B of Sales Tax Act, 1990 should be repealed.
By elimination of this discretionary power, it will restore confidence of investors, encourage expansion of industry and generate employment opportunities.
