Karachi
The Overseas Investors Chamber of Commerce and Industry has suggested the Federal Board of Revenue to exempt listed companies from electronic surveillance of business and records.
In its proposals for the next budget 2021-22, the OICCI said that through SRO 888 of 2020 dated September 21, 2020, a new chapter was introduced in Sales Tax Rules, 2006 whereby all registered persons are made liable to give continuous and full real-time electronic access to the premises, stocks, record, accounts and data, whether maintained electronically or otherwise, as and when required by an authorized officer as provided under section 38 of the Act.
The OICCI recommended that the scope should be restricted to the taxpayers having a series of defaults or misconduct.
“Other taxpayers especially listed companies should be exempted from this requirement as they are subject to rigorous external audits, internal audit requirements by SECP and tax audits and monitoring by FBR,” it recommended.
The OICCI also suggested the FBR to revamp withholding tax regime and bring down the existing 50 different tax rates to five.
The OICCI called for revamping the withholding tax regime, which is one of the key irritants for compliant taxpayers. It highlighted the complexity of the withholding tax (WHT) regime.
The rate of withholding/advance tax also varies depending upon the nature of transaction, legal/tax status of the parties i.e. company or individual and active or in-active filer.
Moreover, the FBR system does not auto-populate taxes withheld in the portal to the credit of the beneficiary.
Furthermore, different categories of WHT rates have been prescribed under the ITO 2001, for various types of payments and it has become extremely difficult for the person processing payments to be precise and accurate in applying WHT rates and ensure compliance.
