FPCCI & FBR Exclusive Meeting Genuine Taxpayers Should Be Protected at All Costs Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has apprised that Mr. Rashid Mahmood
Langrial, Chairman of the Federal Board of Revenue (FBR), has agreed, in an exclusive, candid
and detailed meeting, with FPCCI’s demand of an end to harassment of genuine and regular
taxpayers – and, only the tax evaders or defaulters should be served with notices.

However, FBR Chairman demanded that FPCCI should support the efforts of FBR to persuade
all traders and industrialists to file their returns in a fair, legitimate and transparent manner. To
which the high-profile FPCCI delegation agreed to assist FBR; if the tax collection machinery is
run and policymaking is undertaken in a consultative style.

Mr. Atif Ikram Sheikh acknowledged that the demand of signing an affidavit by chief financial
officers (CFOs) of companies has been withdrawn by FBR after special request by FPCCI. It was
intrinsically unnecessary and redundant as sales tax act 1990 already offers enough provision for
responsible filing of the sales tax returns, he added.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, observed that FBR’s revenue collection target is PKR.
12.97 trillion – representing a 40 percent YoY increase – while the economy is growing at only 2
– 3 percent. This is huge cause of concern for the business community; and, may result in new
taxes, mini budgets and taxing the already taxed even further.

Mr. Saquib Fyyaz Magoon maintained the Finance Bill has significantly reduced the business
community’s confidence in the government policies due to the abrupt withdrawal of 1 percent
full and final liability for exporters; and, sales tax exemption on local supplies to registered
exporters authorized under the Export Finance Scheme (EFS).

SVP FPCCI highlighted that Tajir Dost Scheme (TDS) was also implemented without
consultation; and, as a matter of fact, it has been revealed that TDS has missed its revenue
collection target by 99 percent.

Mr. Magoon stressed that FPCCI has raised issue of SRO. 350 (I)/2024 repeatedly; and, despite
being amended two times over, it remains problematic – just because it was issued without
consulting the stakeholders. FPCCI strongly advocates to effectively revive and expand Alternate
Dispute Resolution Committee (ADRCs) under customs, sales tax, federal excise duties and
income tax heads, he added.

Mr. Saquib Fayyaz Magoon proposed that Export Finance Scheme (EFS) need to be simplified
as it takes 3 – 4 months to complete the process due to complex procedures, issue of duplicate
documentation and system glitches. Additionally, it lacks provisional quotas; transitioning
between business structures and multi-product output from single inputs.

Mr. Magoon warned that the inclusion of EPZs in regular tax scheme will result in major losses
and resentment among the investors. Additionally, local industry has been excluded from EFS as
well; whereas exporters have been unfairly excluded from final tax regime (FTR). FPCCI once
again demands resolution of these discrepancies, he added.

Mr. Khurram Ejaz, member of PM’s committee on cross-cutting in ports and advisor to President
FPCCI on FBR affairs, questioned that why Pakistani ports and terminals cannot operate 24 / 7
examination, delivery and handling like rest of the world. He demanded that FBR’s LIVE project
should be implemented to resolve issues of customs appraisement; modernized labs should be
installed and dwell times should be reduced.

Mr. Rashid Mahmood Langrial, Chairman FBR, agreed that tax rates should be curtailed to
reduce tax burden and enhance compliance; however, it is not possible in the current
circumstances. He added that last 2 – 3 years have been very painful for the economy; but,
economic indicators have started to show improvement.

FBR Chairman stated that he, in principle, agrees with FPCCI’s demands and proposal on
withdrawing affidavit pertaining to sales tax filing; ambiguities in SRO. 350; ports & shipping
matters; need for consultative process and the need for complete digitalization of the FBR
system.

Mr. Muhammad Ayub, President of Quetta Chamber of Commerce & Industry (QCCI), raised
the issue of stuck-up and delayed cargo containers at Panjgur; which should be released swiftly
after payment of any outstanding duties. To which member customs at FBR agreed to resolve the
matter after collection of the incurred duties; and, help save the concerned traders from any
further delays and losses.

Dr. Jassu Mal, representing cotton ginners, highlighted the plight of the sector as it has to pay
taxes on every stage of the cotton production – which raises cotton prices at many different
levels and makes it uncompetitive.