FBR is Aiming To Lower the Cost of Doing Business

Muhammad Ashfaq Ahmad, Member of FBR Inland Revenue Operations said that the Federal Board of Revenue (FBR) prioritizes lowering the value of doing business for the 2021-22 budget by getting obviate unnecessary taxes and reducing enforcement costs.

During his visit to the Karachi Chamber of Commerce and Industry (KCCI) on Friday, chatting with businessmen, he said this move would set companies free in order that they need minimal contact with tax authorities and consider expanding business and industrial activities.

“FBR could also be a 30-35% stakeholder in whatever is earned in the shape of sales tax, tax, or withholding, hence it’s within the authority’s best interest to supply businesses a favorable environment and slash their cost,” he said.

He added that the FBR receives thousands of budget proposals once a year but hardly gets time to travel through all of them.

He emphasized that the FBR would make all-out efforts to implement a maximum number of practical recommendations.

Keeping this in view, he requested the Karachi Chamber and each one other business chambers to directly present budget proposals to the technical committee formed by the minister of finance, get them refined and forward practical recommendations to the FBR.

According to figures released by the depository financial organization of Pakistan, the offtake of capital has declined because of improved performance of the FASTER system in processing sales tax refund claims quickly.

“We are competing with the depository financial organization of Pakistan during a positive contest,” he said. “We dispatch refunds so as that businessmen don’t get to borrow capital from banks because it jacks up their cost.”

He revealed that the FASTER system was running with zero balance and consumed on the typical 40-50 hours to process a refund claim.

“It is functioning with 95.5% efficiency which indicates that the sales tax refund system is outstanding,” he said. 

“The old refund claims remain stuck but instructions are issued during this regard and taxpayers should request field formations to urge their old claims processed, which may be done on priority through the FASTER the system,” he said.

Referring to tax litigation, he said that an enormous amount of revenue remained blocked for the FBR and if it succeeds in recovering just 20% of it, then revenue target would be met and thus the country wouldn't get to approach the IMF to request a cut in it.

Speaking on the occasion, Businessmen Group Chairman Zubair Motiwala urged the FBR to disclose its priorities for budget measures so as that the KCCI and other trade associations could forward a precise budget proposals in accordance with them.

“Small businesses face serious income problems which they don’t have access to banking channels,” he said while expressing concern.

Appreciating the performance of the FASTER system, he urged the FBR to also concentrate on the small and medium enterprises whose tax refunds remained stuck.