Will resolve tax issues related to business, assured the chairman of the FBR| Instant News

ISLAMABAD: Chairman of the Federal Revenue Board (FBR) Muhammad Javed Ghani on Sunday said that he would address tax issues related to the business community to facilitate their business and strengthen the country’s economy.

The Chair of the FBR said this when speaking to the delegation of the Islamabad Chamber of Commerce and Industry (ICCI) led by ICCI President, Muhammad Ahmed Waheed.

Javed Ghani said that he would visit ICCI to interact with the business community and get their input on further improvements in the applicable tax system. He said that efforts would be made to create a taxation system that could facilitate the growth of economic activities and help in increasing state tax revenues. He welcomed the advice given by members of the delegation to resolve taxation related issues and expand the tax base.

Speaking on the occasion, the ICCI president congratulated Muhammad Javed Ghani for assuming the responsibility of the FBR chairman and hoped that the FBR chairman would take steps to address the main tax issues of the business community and promote Prime Minister Imran Khan’s vision of turning Pakistan into a economical economy growing fast.

The ICCI president said that the government has now made a commitment to streamline payment of tax returns, but the process is slow because the business community is facing liquidity problems.

The ICCI President further said that the Covid-19 pandemic had created extraordinary challenges for the business community and the economy as a whole which required the FBR focus on automating rapid returns including customs, sales tax and income tax to ensure that all tax returns are automatically transferred to the bank account of the taxpayer concerned.

He said that another option for solving the problem of refunding money was to allow taxpayers to adjust their tax payable with the accumulated returns. This mechanism will not only address the business community liquidity problem but will also increase government tax revenue.

The ICCI president further informed that under Part-8B of the Sales Tax Act, registered persons were not permitted to adjust input taxes of more than 90 percent of the output tax for the tax period, which according to him could not be justified.

He said that the taxpayer had to deposit 0.10 percent of the sales tax amount in cash when depositing the sales tax and stressed that because of the Covid-19 economic slowdown, the FBR had to allow an adjustment of 100% input tax to the output tax.

ICCI Senior Vice President Tahir Abbasi, FPCCI Chief Coordinator Malik Sohail Hussain and former ICCI vice president Ahsan Zafar Bakhtawari also provided advice on the taxation system.

They say that taxpayers must be allowed 100 percent input tax adjustment because robbing their 10 percent input tax is injustice. They are of the view that facilitating the business community on tax issues will pave the way for an initial economic recovery from the Covid-19 slowdown and keep the country from the current challenges.

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