FPCCI slams FBR for inaction

LAHORE: The Federal Board of Revenue (FBR) on Wednesday drew fire from the country’s top trade body for taking no action against the misuse of Section 38B of the Sales Tax Act 1990.

“We appeal to the Prime Minister to intervene as the challenges facing the economy will only swell if issues tax collectors’ discretionary powers and withholding tax on bank transactions are not resolved,” said Arfan Yousaf, vice president Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in a statement.

“Being a major source of revenue for the government, business community deserves honor while withholding tax should be removed as it is unjustified and double taxation.”

Arfan said that indirect taxes are being removed gradually throughout the world; however in Pakistan these are contributing around 60 percent to the revenue despite the fact that expenses on this practice are higher than the collections.

“Section 38-B is being misused badly against the business community that is one of the major reasons of low tax-to-GDP ratio,” he said adding the exports have been already declined and trade deficit is touching the sky while such issues are adding fuel to the fire.