Businessmen lament SRB’s notices

KARACHI: Businessmen on Saturday termed the notices of sales tax on services issued by the Sindh Revenue Board (SRB) as unlawful, questioning the board's authority over the move.

Representatives of sectors, including private security firms, travel agents and indenters raised their concerns at a meeting with the chairman SRB Khalid Mehmood at the Karachi Chamber of Commerce and Industry (KCCI).

SRB chief said the issue between the revenue board and stakeholders would be soon resolved and the SRB would hold meetings separately with representatives of each sector from next week onwards. 

“The SRB is a business-friendly authority and will settle this matter on priority basis.

“There are some issues of few sectors which need attention,” Mehmood added. 

Siraj Kassam Teli, chairman of Businessmen Group (BMG) said the major issue is interpretation of sales tax by the two sides. 

“Due to this conflict in interpretation, some sectors are facing double taxation from provincial as well as the federal revenue authority,” he said. Industry sources said some companies also approached the Sindh High Court against the notices issued by the Sindh Revenue Board. 

The sources added that despite ongoing negotiations on the instructions of Sindh Chief Minister, the Sindh Revenue Board issued recovery notices to the sectors. 

Recently, the Karachi Chamber of Commerce and Industry sent a letter to Sindh chief minister regarding the notices issued to indenters by the SRB.

The chamber said it is unfair to demand such an irrational tax from indenters who have been earning foreign exchange.

Instead of appreciating their efforts, the government decided to penalise them by imposing such an 'illogical and groundless' tax. 

The KCCI  urged the chief minister to issue directives to the Sindh Revenue Board to stop issuing notices until the issue is resolved.