Pakistan Industrial & Traders Associations Front (PIAF) has welcomed proposed move of the Federal Board of Revenue (FBR) of giving some incentive, like tax credits, to new filers and existing filers of income tax returns to ensure timely return filing and encourage compliance.
Chairman PIAF Irfan Iqbal Sheikh said that beside giving incentives, the problems of tax payers must be settled and resolved, their problems must be felicitated earliest possible times if a conflict arises. He added the business community is not for to indulge with tax related legal matters wasting their precious time and money in un-productive things as we all know that business community is a back bone of the economy and is already serving the economy in difficult times.
Irfan Iqbal maintained that there is a dire need to give some kind of incentives to new filers and regular filers in the form of tax credit for filing returns within the prescribed time period, this thing will encourage the new comers who want to come in tax net but reluctant to get registered after when they see and observe the misuse and harassment created by government officials on business community, he added. The number of taxpayers have decreased from 1.1 million in previous year to 0.9 million this year, mainly due to abuse of Section 38-B of the Sales Tax Act, he said.
The participants of the meeting were of the view that teams from tax department should visit the markets, if indispensable, but they should immediately stop harassing business community. If there is an urgent need for stock taking and ascertaining the Sales Tax liability of any particular business unit, the FBR officials should take association concerned or the Lahore Chamber on board. PIAF office bearers said that unfortunately when the FBR initiates a recovery case, the taxpayers are left defenceless as FBR itself is the complainant and judge at the same time. Instead of focusing on controlling under-invoicing, curbing smuggling and expanding the tax net, the FBR seems inclined to pressurise registered taxpayers who are already suffering due to high rate of sales tax, income tax and Custom duties by creating fictitious cases for recovery of outstanding dues to meet revenue target.