FBR chief rejects rumours over govt?s new measures

[ahlam1399]

By News DeskISLAMABAD: Federal Board of Revenue (FBR) Chairman Shabbar Zaidi insisted on Friday the government would not take any decision that would be counter-productive for the textile industry and regretted that misleading information was being spread about zero-rating, sales tax, CNIC issue and the imposition of tax on edible items.Addressing a news conference, he said the board was engaged in negotiations with the business community across the country and was discussing mainly two issues — SRO 1125 — which is related to zero rating, and requirement of Computerised National Identity Card (CNIC) for sales tax.“We are clear, we do not take any decision that would affect the industry and business of Pakistan,” he said, adding the textile industry of the country was on the path of growth. Clarifying that CNIC requirement was only for sales tax, he said confusion was being created on the issue as some people were trying to resolve their other issues by exploiting this matter. The FBR chairman said the CNIC requirement had not emerged in income tax law rather it came under sales tax law.He said out of 220 million population, only around 47,000 people were registered in the sales tax system, of whom only 19,000 were paying tax. He said the FBR wanted to introduce fixed tax scheme for small shopkeepers and this would resolve the CNIC issue. He, however added there was need to define “small shopkeeper” and urged the business community to draw these limit lines.Zaidi also clarified that there was no deadlock between the FBR and the chambers on the issue of zero-rating. He said since this issue has re-emerged after around 12 years, so it would take time for settling. He said different people have different perspectives and opinions on the sales tax issue.“All Pakistan Textile Mills Association (APTMA) is of the view that the local yarn should be given level-playing field against imported yarn with argument that if the imported yarn comes without imposition of sales tax, it would be cheaper compared to local yarn, hence counterproductive for local industry,” he said, adding: “Some people are of the view that Pakistan does not produce fine yarn which is being imported.”Zaidi said the aim of the FBR was to enhance tax-base and it was working to achieve this objective. He refuted news reports appearing in a section of the press, claiming imposition of tax on flour. He clarified that no tax has been imposed on flour or any edible items.He urged the media to support the FBR in creating awareness among people regarding the tax reforms and expansion of tax base in the country, saying there were people who wanted to stop the tax reform process. Zaidi said he talked to the district administration of Islamabad to take strict action against the people involved in market deception and tax fraud.Replying to a question, he said the FBR wanted to automate the tax system to have less human interference in order to make the board’s reform strategy successful. Zaidi said under section 114 the FBR was authorised to send notices to the people owning 500-yard house for property tax.Replying to a query regarding mobile phone importers, he said duty free mobile importers wanted to come into the tax net but they were willing to pay less against the actual taxes. The FBR chief said the government was committed to stop under-invoicing for documenting the country’s economy.http://feeds.feedburner.com/~r/com/cwEr/~4/t07cTfobAn4

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