KARACHI: Chairman FBR Dr Ashfaq Ahmed has said that there is no amnesty scheme for traders in the next federal budget therefore the rate of duty and taxes is being reduced in the new federal budget.
Addressing the traders at the Karachi Chamber of Commerce, Dr Ashfaq Ahmed said that they were bringing a new system of settlement of cases out of court. The FBR is working on a new tax arbitration system. Karachi Chamber should send its working paper on new tax arbitration system to FBR.
Chairman FBR said that they would work together on budget proposals of Karachi Chamber. The business-to-business condition of the identity card on a transaction of one lakh was deliberately imposed. This condition was not imposed on the sellers of goods earlier, which was misused. The FBR nabbed several cases in which billions of rupees were transacted on fake identities.
In response to a question why Azad Kashmir and FATA have tax-free imports apart from other cities in the country? He said that tax or import exemption in Azad Kashmir does not fall under the purview of FBR as Azad Kashmir has independent status. When FATA and PATA formally merged with Pakistan, they were given tax breaks for 5 years in 2018.
He said that the issue of incorrect calculation of sales tax on import would be rectified. The holding tax rate will be adjusted in the next budget. Soon Holding is introducing an automated tax platform. This platform will solve many problems of traders regarding holding tax. The sales tax rate in the country is very high. Efforts are being made to reduce the sales tax rate by abolishing the exemption. He said that the traders of Karachi responded very well to the point of sale.
Dr. Ashfaq Ahmed said that FBR collects tax at 10% of GDP while our expenditure is 20% of GDP. We have to borrow 8% of GDP. The second problem is the current account deficit. We depend on imported goods, we have gone to the IMF many times, going to the IMF again and again complicates our affairs.
Meanwhile, Chairman FBR Dr Muhammad Ashfaq said that FBR is the cheapest revenue collection authority in the world which spends 60 paisa on revenue collection of Rs 100 each.
Addressing a dinner of Karachi Customs Agents Association on Monday night, Chairman FBR said that due to lack of financial resources, performance is affected and difficulties arise. The present government has assured the FBR of providing the required financial resources for modernization. Consideration is being given to modernizing and activating the Customs Lab.
He said that license examinations for customs agents would be held in the next three months. If there is a restraining order in the court on the issue of license, it will be revoked. Customs agents will be given interim licenses for two years instead of six months.
Addressing the function, Chief Collector Enforcement Abdul Qadir Memon said that there was no ambiguity in the services of customs agents. Karachi Customs Agents did a great job under the web based clearance system. Saifullah Khan, President, Karachi Customs Agents Association, said that the steps taken by the FBR for the betterment of the Customs Preventive Collectorate were commendable.
The Export Processing Zone will be designed to facilitate investors in ensuring the imposition of General Sales Tax and Income Tax. The purpose of the committee is to minimize the difficulties in obtaining GST and income tax. The refund of GST will be made within 48 hours.
These views were expressed by the Chairman FBR Dr. Ashfaq Ahmed while meeting the investors on the occasion of his visit to the head office of Karachi Export Processing Zone. Earlier, Chairman Export Processing Zones Authority Dr. Saifuddin Junejo briefed the delegation about the aims and objectives of the organization, performance of imports and exports and future plans during a detailed briefing by the organization.
During the briefing, referring to the import and export of zones in the country for the last five years, he said that the role of zones in the country’s exports has been significant. Coordination and cooperation with Customs and FBR has been enhanced to facilitate efficiency, transparency, trade and investment. 54 inactive industrial units have been identified which have not been exported in the last five years. These units have been released and these units will be taken under their control and auctioned so that new investors can make these units operational and start exporting. 52 units were also identified which did not meet the required export target. These units will be given an opportunity to revive their business plans and start exporting within 03 months.
Referring to future plans, he said that Karachi Export Processing Zone is being developed on Phase III 80 acres of land which was almost pending for last 9 years. Tender for hiring consultant for planning / master planning of infrastructure development works. Efforts are being made to set up EPZ in Sukkur on the demand of Sukkur Chamber of Commerce and Industry.
