The Ministry of Finance and Federal Board of Revenue are hereby urged to first implement budgetary proposals which were submitted by chambers and associations during the last four financial years since these were entirely ignored and disregarded.
All the chambers and trade associations, signatory to this communiqué will not submit any proposals or recommendations for the federal budget for the fiscal year 2017-18.
This was urged in a convention of Chambers of Commerce and Industry and Trade Associations from all over Pakistan which was organized by Karachi Chamber of Commerce & Industry on Monday to discuss and formulate a joint strategy to seek resolution of issues and problems faced by trade and industry due to harassment, extortion and arm-twisting by the taxation authorities having immense discretionary powers and utter disregard for the budget proposals submitted by the chambers and associations every year.
The submission of any new proposal would be an exercise in futility, they said. The chambers and associations which participated and represented in the convention included all major chambers and trade & industry associations and their nominated representatives who presented their views, suggestions and input for the joint strategy to counter arbitrary and unilateral approach of FBR officials, policy-makers and Ministry of Finance.
After due deliberations, participants of the convention have agreed on a joint strategy and the participants urged the Ministry of Finance and Federal Board of Revenue to withdraw the Draconian provisions and laws giving immense discretionary powers acquired through last four Finance Bills, to the officers of Inland Revenue and field formations which is a core issue and resulting in hardship, loss of productivity and mental torture to the business community. These laws have kept a large number of potential tax-payers out of the tax regime. In fact these laws are a deterrent to broadening of tax-base and resulted in promoting the culture of tax-evasion.
The chambers and trade bodies further suggested that no changes should be made in tax laws including Income Tax Ordinance 2001, Sales Tax Act 1990, Customs Act 1969 and Federal Excise Act, through the Finance Bills. Finance Bill should be confined to the budgetary and fiscal measures only. Any changes in the tax laws and provisions should be tabled through separate Bills in the parliament and passed after necessary debate and consultation with stakeholders.
All chambers and trade bodies strongly denounced the misuse of discretionary powers by the officers of IR under Sections 38A, 38B, 40A, 40B, 176 and 177. ‘We also urge the government to withdraw these sections immediately and restrict the enforcement of the said sections’. Otherwise the government will be responsible for the consequences which may force us to go to any humanly possible means and actions which may have negative ramifications for the revenue.
In case these demands are not accepted by the authorities concerned, the participant chambers and associations will resort to all possible lines of action within their rights including remedy from competent courts of law to have their legitimate demands accepted to withdraw the discretionary powers of the FBR and officers of inland revenue.
