Non-issuance of exemption certificates criticised

KARACHI: The Karachi Tax Bar Association (KTBA) on Tuesday expressed concerns over the stoppage in the issuance of exemption certificates by the regional tax offices (RTOs) after the jurisdictional change.

The FBR revised jurisdictions of RTOs in Karachi by transferring cases for assessment, audit and enforcement purposes with effect from August 1.  KTBA president Rehan Hassan, in a letter to the Member IR (Policy), said taxpayers are facing difficulties in obtaining exemption certificates for the tax year 2017. Hassan said various departments are not issuing the certificates, or delaying the matter due to change in jurisdiction. “Change in jurisdiction will take place after one week and this is not a valid reason for denying exemption certificate issuance,” Hasan said.  

He said the delay of exemption will cause transaction and clearance of genuine taxpayers resulting in business losses.