KARACHI: This is apropos a news item published in various national dailies alleging tax evasion by Fatima Fertilizer Company Limited and Pakarab Fertilizers Limited and their sponsors/directors based on the proceedings initiated by the Regional Tax Office, Multan (RTO). “At the very outset we are stating that it is highly regrettable to note that the news item was published without first seeking the views of Fatima and Pakarab on the veracity and truthfulness of the allegations,” a statement said. “For the record, the sponsors and directors of Fatima Group and Arif Habib Group vehemently and categorically state that the allegations mentioned in the news reports are baseless and hence totally denied.” The statement said Fatima and Pakarab have always paid taxes that are lawfully levied and charged. “During the tax periods, mentioned in the news reports the sales of both the fertiliser companies plummeted, as farmers and dealers curtailed purchasing in anticipation of price reduction of fertilisers due to the announcement in the budget 2015-16 by the government of subsidy on fertilisers in the coming fiscal year,” it said. “Due to the lack of demand, as a consequence of the impending governmental subsidy, the stocks of fertiliser companies started building up.” The statement further said: “It is a matter of record that the RTO has verified availability of the stocks reported by our fertiliser companies and that we have taken all steps to facilitate the stock taking exercise carried out by the officials of the RTO.” “Even today, the unsold stocks are lying at warehouses, where we hold stocks for sales to the dealer network.” The statement said despite validation of stocks of the fertiliser companies and confirmation that this stock has not been sold, the RTO has taken the position and claimed that mere transferring of stocks for storage in the warehouses amounts to sales and, therefore, Fatima should pay sales tax regardless of whether these stocks get ever sold or not. “It is this unjustified demand which we have been refuting and contesting for the last several months,” it said. It said Fatima and Pakarab will deposit the sales tax on the sale of the stocks, “as and when it takes place/happens.” “We are one of the largest taxpayers of the RTO and have always extended support to this RTO in meeting its tax collection targets fixed by the FBR (Federal Board of Revenue), from time to time,” it added. “At this very time, more than four billion rupees are lying as advance against taxes with this collectorate on behalf of the Fatima and Pakarab.”
