KARACHI: Chairman of Pakistan Apparel ForumMuhammad Jawed Bilwani has complained that that hundreds of notices for short payment of sales tax withholding were issued to taxpayers on the basis of computerized list sent by FBR to tax offices.
Elaborating on the details, he said that a large number of members of Pakistan Apparel Forum have complained about service of notices from tax officers for short payment of sales tax withholding. The irony is that all notices contained incorrect details and application of law.
Giving example, he informed textile sector is liable to pay sales tax at reduced rates of 2% and 3%. While issuance of notices to them was for sales tax @ 17% on their purchases were assumed and sales tax withholding were calculated accordingly. The same is factually illegal and incorrect. Likewise tax officers did not bother to exclude the transactions which are not subject to sales tax withholding under special procedure of sales tax withholding, he added.
Jawed Bilwani took strong exception to this careless attitude of tax officers and said that FBR does not have professional management and they rush to take action without appreciating the negative implications on business and industry. Bilwani said issuance of frivolous notices does not only waste the precious time of business community but it is also an exercise in futility and creates nuisance value. The field formation of the FBR does not reflect good reputation and such careless approach of top FBR management gives free hand to their field formation which only prompts corruption.
Jawed Bilwani also emphasised on placing check and balance system against issuance of illegal notices and orders. He said in the absence of any legal provision and proper mechanism where any illegal action of the tax officer could be questioned, business community is left at the mercy of the high-handedness of these tax officials. He said industry is already struggling due to the severest ever energy crises, deteriorating law and order situation, international recession and high cost of doing business and now to top it all the business community was being dragged in this futile exercise. He urged the Finance Minister to take serious note for issuance of illegal notices and high- handedness of FBR officials.
