Trade body demands end to ‘tax harassment’

LAHORE: Instead of overtaxing existing payers, Federal Board of Revenue (FBR) should take steps to bring all the registered people under the tax net, Lahore Chamber of Commerce & Industry (LCCI) said in a statement issued  on Thursday. 

“The FBR officials are misusing Section 38-B of Sales Tax Act, 1990 to harass the business community unjustifiably at their shops and stores,” Muhammad Nasir Hameed Khan, acting president LCCI, said while presiding over a meeting here at the office of the chamber. 

“They not only take coercive measures to raise unlawful tax demands without providing any supporting document but also carry all the available records with them.” 

According to the statement, the consensus of the meeting was the tax department’s teams may visit the markets, if indispensable, but should immediately stop harassing business community. 

“If there is an urgent need for taking stock and ascertaining the Sales Tax liability of any particular business unit, the FBR officials should take the concerned association or the chamber on board,” the statement added. 

Furthermore, attendees at the meeting expressed dismay that out of 3.5 million registered taxpayers only around 1 million file their returns. 

“Government should take all the measures to ensure filing of returns by remaining 2.5 million individuals and businesses,” a business leader said adding, “The government claims that it always acts as a facilitator but in this scenario it is entirely otherwise.” Criticizing certain practices of the FBR, the participants complained that procedures like attaching business bank accounts for recovery of outstanding dues are not only hampering growth but also tarnishing the government’s business-friendly image. 

“Unfortunately if the FBR initiates a recovery case, the taxpayer is not allowed to defend as FBR itself is the complainant and a judge,” they noted.  They business association also protested that instead of focusing on controlling under-invoicing, curbing smuggling, and expanding the tax net, the FBR seems to be inclined to pressurize registered taxpayers who are already suffering due to high rate of sales tax, income tax and Custom duties by creating fictitious cases for recovery of outstanding dues to meet revenue target.