FPCCI urges govt to end FBR's discretionary powers

ISLAMABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Federal Board of Revenue (FBR) to withdraw the discretionary powers of tax officials for multiple audit and posting of Inland Revenue official at business premises.

FPCCI President Mian Anjum Nisar and the federation’s Budget Advisory Council Convener in a statement on Wednesday said these upgrades as well as simplification of taxation law, and provision of relief to taxpayers were necessary to restore the confidence of assesses in the tax machinery.

The proposal were made as a part of the FPCCI presentation to the concerned quarters, including Finance Adviser Hafeez Shaikh, Commerce Adviser Razzak Dawood, and FBR Chairperson Nausheen Javaid Amjad for incorporation in the forthcoming Federal Budget 2020-21.

The FPCCI gave these proposals after identifying a series of such provisions vesting discretionary powers with tax officials, the statement said. Under Sections 177, 214C and 122 of Income Tax Ordinance, the officials were allowed amending assessment orders multiple times within five years from the end of the financial year, which resulted in multiple tax assessments.

These powers were an incentive for IR officials to serve audit notices to commercial importers, who have already discharged their tax liability as full and final at the time of clearance of goods at customs stage, they said.

Nisar lamented posting of IR official at business premises under Section 40B of Sales Tax Act, 1990 to monitor production, sales of goods, stock position etc, and called it outdated in the era of computerisation.