Chairman Federal Board of Revenue (FBR) Muhammad Javed Ghani has said that he will try his best to address the tax-related issues of the business community to promote business activities and strengthen the economy.
He said this while talking to a delegation of Islamabad Chamber of Commerce and Industry (ICCI) that called on him led by Muhammad Ahmed Waheed, the President of the Chamber.
Tahir Abbasi Senior Vice President ICCI, Malik Sohail Hussain Chief Coordinator UBG FPCCI, and Ahsan Zafar Bakhtawari former Vice President ICCI were in the delegation, says a press release.
Accepting the invitation of Muhammad Ahmed Waheed, Javed Ghani said he will visit ICCI for interaction with the business community to know about their tax issues and get their input for bringing further improvements in the prevailing tax system.
He said efforts would be made to evolve a taxation system that could facilitate the growth of economic activities and help improve the tax revenue of the country.
He welcomed the suggestions of the delegation members for resolving problems and broadening the tax base.
Speaking at the occasion, Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce & Industry congratulated Muhammad Javed Ghani for assuming the charge of chairman FBR and hoped that he would take measures to address the key tax issues of the business community and promote the vision of the prime minister to turn Pakistan into a fast-growing economy.
He said the current government has made commitments to streamline the payment of tax refunds, but the process is quite slow due to which the business community is facing liquidity issues.
He said the COVID-19 pandemic had created extraordinary challenges for the business community and the overall economy, and this situation necessitated FBR to focus on speedy automation of refunds including customs duty, sales tax and income tax to ensure that all tax refunds are automatically transferred to the bank accounts of the concerned taxpayers.
He said a better option to solve the refunds issue is to allow taxpayers to adjust their payable taxes against the accumulated refunds.
This mechanism will not only address the liquidity issues of the business community; it would also improve the tax revenue of the government.
ICCI President said that under Sec-8B of the Sales Tax Act, a registered person is not allowed to adjust input tax in excess of 90 percent of the output tax for that tax period, which is not justified.
He said taxpayers had to deposit 0.10 percent of the sales tax amount in cash at the time of depositing sales tax returns and urged that in these tough conditions, FBR should allow 100 percent adjustment of input tax against the output tax and abolish the condition 0.10 percent cash payment of the sales tax amount while depositing sales tax returns.
It would ease the problems of the business community and save businesses from financial troubles.
Tahir Abbasi Senior Vice President ICCI, Malik Sohail Hussain Chief Coordinator UBG FPCCI, and Ahsan Zafar Bakhtawari former Vice President ICCI suggested that taxpayers should be allowed 100 percent adjustment of the input tax as depriving them of 10 percent input tax is an injustice with them.
In current difficult circumstances, they urged FBR for taking maximum relief measures for the business community so that they could feel facilitated in fostering business and economic activities.
They were of the view that providing facilitation to the business community in tax matters would pave the way for early recovery of the economy and steering the country out of the current challenges.