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Friday, December 15th, 2017

Withdrawal of unnecessary amendments in Tax Return Filing demanded

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Karachi: Karachi Chamber of Commerce and Industry (KCCI), President, Mian Abrar Ahmad has demanded to withdraw the unnecessary amendments made in Sales Tax, Federal Excise and Income Tax Return Filing via recently introduced return filing system and the relevant form.

In a letter to Chairman Federal Board of Revenue he has urged that Business and Industrial Community cannot accept the Amended Return in its present form and consequently the tax payers are unable to comply.

The KCCI demands all such amendments be withdrawn with immediate effect or otherwise Karachi Chamber be contacted for immediate consultation to resolve this issue. President KCCI has voiced that the Business and Industrial Community cannot and will not move forward in this form.

Therefore, it is in the interest of the Business and Industrial Community and Government Exchequer to settle this issue as soon as possible.

President KCCI has stated that numerous complaints were received from members newly issued Income Tax, Sales Tax and Federal Excise Returns and this is very unfortunate that major changes have been made without consultation with the leadership of the business and industrial community which has made it practically impossible to file the tax returns and will only result in reduction of tax revenue and would force genuine tax payer’s to operate outside the tax net.

President KCCI has pointed out some major changes that have been brought into the tax returns and need to be eliminated:-

For Sales Tax Returns, the FBR have made submission of CNIC and NTN mandatory for all purchases made by any registered person. Reporting of complete details of every purchase, Debit Note and Credit Note is practically not possible when one has to segregate on the basis of rate, H.S. Code and other parameters defined in the Note of Annex-A. The column of Input Credit Not Allowed is ambiguous.

The Annexure H (stock statement) of new form requires complicated calculations and maintenance of various ledgers for the different types of products and items. This cannot be maintained by the small business being run by uneducated entrepreneurs.

The amount of work required to submit this information will not allow the tax payer to efficiently run the business. The business community is striving to meet the ends and cannot act as an unpaid accountant for the FBR. This form should be withdrawn.

In sales tax return annexure “F” have been incorporated where details of carried forward input tax in relation to closing stock on monthly basis wef. 01-07-2011 has to be provided. This form requires complicated calculation and maintenance of various ledgers for the different types of Inputs on Domestic Purchases, Imports and Value Addition Tax.

This exercise is cumbersome and require additional manpower, no small business house will be able to fulfil as a result will refrain from filing and avoid.

Under the Income Tax Return, in Annexure “D” have been incorporated requiring businessmen to furnish details of expenses incurred, including education/spouse/self travelling/telephone and mobile bills/ internet and so on.

This is against the spirit of self assessment, where genuine tax payer’s come forward voluntarily and submit their claim, unfortunately through the arm twisting and increasing the work load of industries and traders, will only have negative impact on business climate which is already suffering, beside it is next to impossible, to handle such complicated exercise.

Businessmen are paying substantial taxes on advance stage simply to avoid underhand dealing and to operate with peace of mind, and least possible documentation. Similarly related to income tax return is the calculation of flood surcharge, where the payer’s are expected to calculate 15% surcharge to be exact on 108 days of their annual income which is complicated, unproductive and simply a hassle.

Mian Abrar Ahmad, President KCCI has urged that FBR should stop creating such resistance and opening avenues for corruption and should involve its own tax machinery to increase the tax net and leave the Business Community alone to concentrate on its business, and enhance income and as a result the tax revenue.

For more information, contact:
M. Shafiq Baig
Public Relations Officer
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road,
Shahrah-e-Liaquat, Karachi-74000
Tel: +9221 9921 8001 -09
Fax: +9221 9921 8010
Email: pro@kcci.com.pk, pro2@kcci.com.pk
Website: http://www.kcci.com.pk/

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