Karachi: The Chairman Federal Board of Revenue has agreed to defer the mandatory requirement to provide CNIC or NTN by manufacturers, importers and exporters of their suppliersĀ until December 31, 2011. A high-ranking delegation from the Federal Board of Revenue led by chairman Salman Siddique visited the Federation of Pakistan Chambers of Commerce and Industry in Karachi on Friday where they met prominent members of the business community.
The second round of FPCCI-FBR meetings was held to settle contentious issues raised by the business community at the seminar organized by FPCCI on Wednesday, October 26, when the Facilitation and Taxpayers Education (FATE) Wing of FBR held an interactive session with FPCCI members and representatives of Tax Bar Associations.
The meeting was presided over by Mr. Khalid Tawab, Acting President FPCCI.
Siddique also stated during the meeting that Annex F and H of the Sales Tax Return form would be revised in consultation with the business community and a one-page, simple substitute will be formulated. Their implementation was also extended up to December 31, 2011.
Regarding deletion of Annexure D of the Income Tax Return, the Chairman FBR conceded that the issue can only be settled after detailed consultation with representatives of FPCCI, until which it will be deferred.
The Chairman FBR agreed to consider Acting President FPCCIās suggestion regarding a fixed sales tax scheme for retailers. It was further resolved that the tax return forms would be printed in Urdu as well as English. FBR will expedite the refund of longstanding sales tax claims. He said that the minimum tax @6% on services will be reduced to 1% and the amended SRO would be issued shortly.
Responding to a query, the Chairman commented that audit would be conducted on risk parameter basis for which selection would be made randomly via computer balloting with transparent parameters. It was also resolved that the valuation data of importers and exporters will be given to FPCCI. The Chairman also agreed to address the problem faced by the importers due to provisional assessment under Section 81 of the Customs Act, 1969 and finalizing the importerās value of goods declared. The period of provisional assessment would be 120 days only. He also agreed to restore Rule 14 of the Sales Tax Rules, 2006, which was omitted via SEO 487/2011, so that the previous provision of auto-revision could be restored.
Regarding the contention that sales tax @ 4 and 6% for zero-rated industries is not workable, the Chairman agreed to finalize the issue in consultation with FPCCI. The Chairman-FBR also agreed that the Executive and Adjudication in sales tax cases are two separate forums and would be separated. For this purpose, Section 45 of Sales Tax Act, 1990 would be restored.
Regarding the menace of under-invoicing and misdeclaration, the Chairman said that a uniform rate of valuation would be implemented throughout Pakistan. He also agreed to revive the mechanism of ADRC so that out of court settlement may be used for sorting out thousands of pending cases in court.
There was consensus among all participants at the meeting that the tax base needed to be broadened and documentation of the unorganized sector of the economy was essential, if Pakistanās economy was to prosper. The Chairman-FBR requested cooperation from the business community in helping to achieve this objective, and all businessmen assured the FBR officials of maximum cooperation in this regard.
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