ISLAMABAD: Senior Vice President (SV) and Chairman of Budgetary Advisory Council of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Syed Mazhar Ali Nasir has urged Finance Minister Miftah Ismail and the Federal Board of Revenue’s (FBR’s) Chairman Tariq Mahmood Pasha to restore the Final Tax Regime (FTR) option to commercial importers.
He said the income tax paid at 6 per cent at custom stage be considered as full and final discharge of their tax liability instead of considering it as a minimum tax.
Syed Mazhar Ali Nasir on Monday elaborated that in pursuant to an amendment in section 148 (8) in ITO 2001 as proposed by Finance Bill 2018, such commercial importers would now be required to file income tax returns instead of filing of statement under section 115 and as such would be subject to audit under section 177 of the ITO 2001. “The proposed amendment has created unrest among the importers and they are very disturbed” he added.
He said that the FPCCI has argued that it would open up the option to the tax collectors to further squeeze the taxpayers through audit and create demand. He added that it would encourage direct contact between a taxpayer and tax collector which is against the government policy as it promotes corruption and tax evasion.