FPCCI warns of nonparticipation in budget making

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday urged the government to avoid policy of scrapping tax proposals, which it said will discourage trade bodies to participate in the process of budget formulations.

Nasir Khan, acting president of FPCCI said numerous laws and regulations have been imposed on the business sectors while at highest level meetings the Federal Board of Revenue (FBR) officials are unable to respond.

The highest level officials should have autonomy to resolve and decide the issues being raised in the meetings, he said. There is no representation of the apex trade body in various crucial decisions being taken by the FBR.

“During frequent visits of Member IR (Operation) to the FPCCI Head Office, a number of problems were put forward for decision but no fruitful decision is made,” Khan said during a meeting the FBR chairman. “There is a wide communication gap between FPCCI and the FBR and if the position is not improved then the net results in progress to resolve trade related issues will be zero.”

FBR chairman assured that he will consider the idea to establish a help desk at FPCCI. He termed the idea to hold seminars on the subject of budget proposals and to improve tax laws.

Zakaria Usman, convener of the FPCCI Budget Advisory Council said the FBR lacks consistency in policies which change rapidly to affect the working of businessmen.

“The policy of FBR to squeeze the already registered taxpayers may be shifted to a mechanism to explore new taxpayers and avenues accordingly,” Usman said. “The policy to issue SROs overnight may be come to an end forth with.”

The FPCCI shared the idea of one window operation that all the taxes are collected on same place including its adjudication so that the traders may not run from pillar to post for redressal of their problems. Traders of Balochistan have problems with the intelligence on valuation issues. The trade bodies struggled to stop smuggling in the province. Tax remission takes days and month to dispose. Trade bodies may be taken on board and on transfer / posting of the officers so that the willing officer could be pointed out for smooth running of day to day issues, according to the FPCCI.

Khurram Sayeed, former vice president of FPCCI slammed the new practice of FBR to issue notices to the taxpayers for the last five years.

The officials when contacted say that the notices are system generated and they will rectify the data accordingly. This is against the judicial norms that income tax officer who issue notices for recovery conducts the hearing himself which should have been heard by a separate officer, he said.

FPCCI also called for implementation of FBR help desk at the FBR. There should be a meeting of FBR officers with the FPCCI representatives within two weeks’ time to hear the trade bodies and to consider budget proposals. The consultation of FPCCI and FBR on tax matters is almost zero, said MA Jabbar, former vice president of FPCCI.

The FPCCI called for regulation of port and shipping laws so that terminal operators and shipping agents may not be able to shift their responsibilities. Unless SMEs are encouraged Pakistan will never achieve its goal towards prosperity and industrialisation.