Federal Board of Revenue (FBR) Corporate Regional Tax Office (CRTO) Karachi Chief Commissioner Aftab Imam has assured the business community of analysing the issue of high turnover tax on yarn traders as compared to profit margins and looking into the possibility of restoring it back to 0.1% from 1.5% in the next budget.
During his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Monday, the chief commissioner said that the FBR was seriously working on creating ease for the business community as the economy would only flourish when businesses flourished, which would automatically improve tax revenue for the country.
“Hence, we want to facilitate the business community and keeping in view the FBR’s approach, most of the issues being faced today would be resolved in the next one and a half year as we are very keen to create a tax-friendly environment.”
In response to concerns expressed over multiple audit notices for six-year-old cases being received by the business community, he said that the FBR was well aware of the issue and it had been observed that most of them were system generated notices, hence, the business community should not worry as the FBR was trying its best to resolve the issue.
“There is no need to re-submit those documents with the FBR which have already been submitted for audit and only the missing documents should be provided with a cover letter in which it should be clearly mentioned that the following relevant documents have already been provided while the missing documents are being sent,” he added.
He sought business community’s assistance in identifying those millions of individuals who had been doing businesses of up to billions of rupees but remained out of the tax net.
“The unregistered individuals have to be taken to task, which will reduce the burden on existing taxpayers through a reduction in tax rates.”
Also speaking on the occasion, KCCI President Shariq Vohra said, “We hope that the FBR would incorporate maximum number of recommendations given by KCCI in its budget proposals which have been recommended in the larger interest of the country.”
Vohra pointed out that many members of the business community have been receiving bulk audit notices nowadays in which huge number of documents for six years old cases of 2014 were being demanded, which was not making any sense at all and it appears like an attempt to harass the business community.