A delegation of Karachi Chamber of Commerce and Industry (KCCI) held an in-depth discussion on KCCI’s proposals for the federal financial budget 2019-20 with Federal Board of Revenue’s chairman Jehanzaib Khan and his team at a meeting.
During the meeting, consensus was developed on various major issues and the FBR officials, while agreeing to most of the KCCI’s budget proposals, also assured to implement them in the upcoming budget.
Responding to KCCI’s proposal, the FBR officials agreed to rationalise the tax structure for import of raw materials by commercial importers and manufacturers.
They also committed to review and curtail the discretionary powers vested to the officials of Inland Revenue which KCCI considered a source of harassment and extortion and against the business and industrial community.
Discussing the raids and freezing of bank accounts, KCCI delegation and FBR officials reached a consensus that instead of carrying out random raids on business entities, such harsh actions would only be taken when evasion of very large amount is detected and concrete evidence is available.
KCCI delegation highlighted all major issues, including issues relating to the Income Tax, Sales Tax and discretionary powers along with concessions and exemptions in various sectors of the economy which have resulted in the distortion of the tax regime.
In his remarks, chairman BMG and former president KCCI Siraj Kassam Teli pointed out that the current tax regime, relevant laws and discretionary powers were being used to harass the business and industrial community. He said such actions were hindering economic and industrial growth. “These laws have to be reformed in order to create conducive environment for growth and liberalisation of trade and also for the revival of economic activities,” he said.
On the occasion, a comprehensive presentation was also given to the FBR team in which major taxation issues were highlighted and remedial steps were also proposed for ease of doing business and enhanced revenue generation.
Teli-led KCCI’s delegation comprised of vice chairmen BMG Haroon Farooki and Anjum Nisar, general secretary BMG AQ Khalil, president KCCI Junaid Esmail Makda and former senior vice president Muhammad Ibrahim Kasumbi.
Dr Hamid Ateeq Sarwar, member (Inland Revenue Policy), Muhammad Javed Ghani, member (Customs Policy) and chiefs of Income Tax, Sales Tax and c Excise Duty and other officials were also present at the meeting and discussion .