The President of Friends of Business and Economic Reforms (FEBR),Kashif Anwar has raised serious concern over the newly-promulgated presidential ordinance and called for industry-friendly taxation regime
Islamabad (Pakistan Point News / Online - 04th January, 2020) The President of Friends of Business and Economic Reforms (FEBR),Kashif Anwar has raised serious concern over the newly-promulgated presidential ordinance and called for industry-friendly taxation regime.In a statement issued here on Saturday, he said that the ordinance provides relief to the retailers and distributors only, imposing more restrictions on manufacturers, which is the actual base of economic growth of any country.
He said that without CNICs condition, the FBR has come up with an alternative plan through Presidential Ordinance that it would not allow input adjustments to those manufacturers who would sell Rs10 million goods on monthly basis to unregistered buyer.He said that the objective of this amendment through Presidential Ordinance is to bring major distributors into tax net but restrictions were not imposed on distributors or retailers rather the manufacturers have been restricted to do the job of FBR, creating problems for the industry which is already in trouble due to multiple issues.
According to FBR, the big distributors who made purchases from Rs10 million on monthly basis to Rs100 million on annual basis, the manufacturers would not be granted input adjustments if they would sell their products to unregistered persons."The limitations must have been on retailers that they cannot made purchases of over Rs10 million if they are unregistered. It is just stupid and unfeasible," he added."In my opinion, through ordinance the authorities have attempted to create rift among the business community so that they could not be united.
Traders have been told that they have got maximum benefits but manufacturers were asked to make the traders registered, which is actually the task of FBR itself."He was of the view that the FBR wants that the manufacturers should pressurize the traders for documentation.He said that through this ordinance, the discretionary powers of tax officials have enhanced which will pave the way for misuse of powers and corruption, asking the FBR not to harass the business community but find new taxpayers in order to increase the revenues.
FBR should motivate the staff, introduce the latest technology, plug loopholes and find new taxpayers to end the country's dependence on foreign loans.The new powers of FBR officials has terrified the business community that deserves to work with peace of mind. He asked the chairman FBR to plug loopholes causing tax evasion and other irregularities and employ the latest technology to enhance collections without hurting the existing taxpayers.
