(Karachi P.R. 13th June, 2016) Sheikh Khalid Tawab, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) rejecting proposed discretionary powers to the Commissioner, Inland Revenue for property valuation under section 68(2) of the Income Tax Ordinance 2001, urged Federal Finance Minister Senator Ishaq Dar to withdraw the said amendment because it could open the floodgates of corruption.
In a statement, the FPCCI Acting President said that this step would result in promotion of mal-practices and encourage mis-declaration and as such be withdrawn to protect and promote the construction industry which is already over-burdened with various taxes. The power of assessing value of the property would further add to woes of the construction sector and the investors and builders would be constrained to invest in the foreign countries or in other unproductive channels which would jeopardize the Prime Minister plan for providing low cost houses to the masses, he further said adding that that raids being carried out on taxpayers by the FBR be immediately stopped as it has caused a great deal of anxiety amongst the taxpayers and any policy in this regard may be framed with the consultation of FPCCI.
Sheikh Khalid Tawab told that the construction industry not only providing jobs to millions of skilled, semi-skilled and unskilled workers but also supporting a host of downstream industries like paint, timber, tiles, hardware etc and if the proposed amendment to the Income Tax Ordinance 2001, the country’s economy will witness the drastic and irreversible impacts.