LAHORE: Regional Tax Officers (RTOs) have failed to follow the Federal Board of Revenue (FBR) chairman’s instructions regarding settlements of audits on the payments of 30 percent of the total demands. All the audit matters are still pending which would have serious implications on the achievement of the RTOs financial year’s revenue collection targets.
These views were expressed by Lahore Tax Bar Association (LTBA) General Secretary Abdul Waheed while talking to Customs Today.
The LTBA secretary general said that it was decided in a meeting held with chairman FBR that the RTOs would settle audit issues with the taxpayers on the payment of 30 percent of the payment of tax to the department however it has never happened as not a single case has been undertaken or settled by the department.
He said that the very trend would push up the taxpayers to go to court of law which is their basic right depriving the department of important revenue.
Delay in registration is another burning issue which has also played havoc with the routine business of the department and the taxpayers.
“Due to the unwarranted delays in registration, importers and exporters have to suffer from heavy losses in term of money and time due to which they cannot conduct their routine business.
In answer to question, he said that section 38 has created ripples among the business community as the raids were not only disturbing their routine business but also damaging their hard earned reputation.
“However, the matter was taken up at the chambers of commerce and LTBA levels and now the business community seem satisfied to some extent as the tax collectors have been instructed to conduct raids after adopting a due legal procedure with the permission of chief commissioners and commissioners.
Another very important issue is that the RTOs have started undue recoveries under 122 without serving of notices which is inappropriate he said adding that, proper service of notice should be done.
He also complained against the RTOs staff who have been extending consultation to the taxpayers which is inflicting huge losses to national exchequer for the staff usually misguide the taxpayers for their vested interests.
The government should be make income tax and customs laws in due consultation with the tax lawyers and traders community to introduce indigenous tax system in perfect harmony with the local conditions, Waheed, said, demanding that registered taxpayers must be appreciated and not harassed so that they feel honored in paying their tax liabilities instead of evading them.
“Percentage of ST should be reduced as the rate of tax is much higher in our country than that of the other countries in the region”, he added.
While giving his insight in to the income tax related issues, Waheed, said that Income tax percentage should also be reduced enabling the taxpayers to find taxpaying an easy option than that of the tax evaders.
The tax payers who are already in the tax net are being squeezed by the department thus discouraging the taxpayers from paying their tax liabilities, he concluded.
He, however, appreciated, the Punjab Revenue Authorities in promoting tax culture in Punjab adopting due procedure instead of harassing the taxpayers.
