KARACHI: A meeting of the Senate’s Standing Committee on Finance was held in Islamabad under the Chairmanship of Senator Salim Mandviwala to discuss and address the issues and problems faced by country’s business and industrial community due to the unchecked discretionary powers acquired by FBR over the years and misused by the officers of Inland Revenue for harassment and extortion of registered taxpayers.
Senator Salim Mandviwala had taken serious note of complaints voiced by representatives of trade, industry and Taxpayers regarding the high-handed tactics and coercive approach of FBR and invited all Chambers, Associations and affected parties to attend the meeting of the standing committee in order to have a threadbare discussion in the presence of FBR officials and decide the future course of action to curtail the discretionary powers and resolve other issues related to taxation policy in order to alleviate the suffering.
Vice Chairman Businessmen Group & Former President KCCI Haroon Farooki, President Karachi Chamber Shamim Ahmed Firpo, Former Senior Vice President KCCI Muhammad Ibrahim Kasumbi, President Lahore Chamber Abdul Basit, President Islamabad Chamber Khalid Iqbal Malik, President KPK Chamber Haji Muhammad Afzal, President Gujranwala Chamber Saeed Ahmed Taj, Executive Member Gujrat Chamber Muhammad Naeem Imtiaz, Chairman Taxation Committee of Lasbela Chamber Iqbal Ismail and other representatives of numerous Chambers of Commerce and Industry and Trade Associations attended the meeting whereas Chairman and members of FBR and Senators from ruling party and opposition were also present on the occasion.
Chairman Standing Committee Salim Mandviwala expressed his dismay and concern over the large number of complaints received from representatives of business and community on the misuse of discretionary powers by FBR and a very disrespectful treatment of tax-payers.
Speaking on the occasion, Vice Chairman Businessmen Group & Former President KCCI Haroon Farooki, who is also the convener of Action Committee of all chambers, highlighted the core issues of Discretionary Powers delegated to the lower cadres of FBR and harassment of tax payers which has resulted in decline in number of taxpayers and failure to broaden the tax base. To meet the revenue targets, FBR has resorted to squeeze the compliant taxpayers who are already burdened with high rates of taxation and number of taxes.
He pointed out that taxpayers have been made Withholding Agents and collect advance tax on behalf of FBR which is causing serious hardship to the registered persons because we do not have the required tools, capacity and manpower to collect taxes from entire supply chain comprising many unregistered persons. As a consequence, the Withholding agent becomes liable to pay tax on behalf of non-filers.
