KARACHI: Mian Nasser Hyatt Maggo President of FPCCI presenting crest to Muhammad Javed Ghani, Chairman FBR at Federation House Karachi. Athar Sultan Chawla, Nasir Khan, Arif Yousaf Jeewa, Muhammad Hanif Lakhany, Vice Presidents FPCCI, Zakaria Usman, former President FPCCI, Sultan Rehman, Former Vice President FPCCI and others are also seen in the picture.

KARACHI: Mian Nasser Hyatt Magoo, President Federation of Pakistan Chambers of Commerce and industry in a meeting held with Chairman FBR along with senior officials from Customs and IRS said that it is high time to have paradigm shift in the tax structure to induce investment, promote production and grow economy instead of present revenucracy which remains the focus of FBR, says a Press release.
He said that constitutional and lawful position given to FPCCI through Act of parliament to represent the private sector of trade, industry and services has been diluted by FBR through marginalized interaction with the apex body. He said that hardly any response is given by FBR against matters of members of trade bodies referred to by FBR.
He further stated that the revenue generating agents are being ignored by FBR, which is against the obligation which it owns. President FPCCI said that instead of negotiating with institutional representatives of FPCCI, FBR is attending Para shooters who have no locus standii to represent private sector stakeholders. He said that FBR should not accord market practicing tax lawyers and tax consultants to represent FPCCI in the FBR various committees.
Mian Nasser Hyatt Maggo, President FPCCI said that FBR must come back to its past position since decade to negotiate trade, industry and business matters with/through apex body. The FPCCI collects fiscal improvement proposals from all the members’ bodies of trade and industry and CCIs to consider the paradigm changes in the present taxation for promoting the economy with incremental tax revenue on a sustainable basis.
The apex body and its working on financial and other issues, if taken up seriously with higher percentage of acceptance with higher level of seriousness of FBR would be a possible solution to make the budget which conducts business in harmony instead of amongst present conflicts and contradictions. The attention of the FBR was invited towards present leverage to groups other than FPCCI, which is against the lawful representation which FPCCI enjoys. It was said that the SMEs being said to be the backbone of the economy is being practically ignored and the persons of powerful and in-person connected groups have replaced the representation in decision making at FBR level.
The members from different trade bodies invited attention of FBR towards CNIC condition on sale which is counterproductive to required sales tax collection as well as impede the industrial production and markets sales. Nowhere in the world CNIC or identity is asked from buyers, Pakistan is the only example set by FBR causing problems in business, in specific promoting the agitations on street by the agents of sales of produce, the conducting of small business be settled in peace by removing CNIC condition for buyers.
The participants invited the attention of Chairman FBR that still the entry of raw materials in part II of 12th schedule of Section 148 of ITO has not been facilitated, which is in the exclusive domain of FBR to resolve. The attention was also invited towards the glaring example of not entering raw materials and sub-component imported by vendors under SRO 655 but on the contrary all the components imported by assemblers have been assigned part II of the 12th Schedule of Section 148. This high handedness that weaker and SMEs segments not being well connected in the FBR committees are not being accommodated for otherwise on high reasonable ground. Other manufacturers also claimed continued ignorance of their requests pending with FBR with zero response.
Tax structure on import of tea requiring rationalization was also put to the notice of Chairman FBR. Notices have become multiplied after the split of IRS Commissionerate from earlier single unit to changed multiple units has eroded the concept of facilitation through One-Window. The same showcase notice is now originating from various windows opened in IRS. The attention of Chairman FBR was also invited by the FPCCI towards the requirement of independence of the tax judicial system, which presently negates the constitution and is pending since long for implementation in order to be constitutional compliant.
While replying, the Chairman FBR Muhammad Javed Ghani said that he has noted the matters at large given by the members of the trade bodies and said the FBR Help Desk will be established in FPCCI but however, it requires consultation with various wings of FBR in order to open the Desk for productive outcome. He further informed that the reduced human interactions is our policy towards which we are working and even we have improved the recent refunds in less period than it was earlier, which nearly is 70 to 80 percent more than the preceding period. He also said that frequent and purposeful interaction with FPCCI is being recognized to be a good move in the objective development of the economy of the country.
The meeting was attended by Athar Sultan Chawla, Hanif Lakhani, Nasser Khan, Arif Jeeva, Vice Presidents FPCCI, Zakaria Usman former President FPCCI, Sultan Rehman, Khurram Ijaz. Engr. M.A. Jabbar, Khurram Saeed, former Vice Presidents FPCCI and Junaid Makda, Haroon Farooq and Vohra former presidents of KCCI, Shabbir Mansha Convener FPCCI Committee and other senior members representing various trade bodies of Pakistan.
The FBR team comprised of senior officials from Customs and IRS, Ms. Surrayya A. Butt, Saif Uddin Junejo, and Abdul Hameed Memon.
The meeting was concluded with the presentation of FPCCI crest to the Chairman FBR Muhammad Javed Ghani.

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