FBR sales tax system to remain suspended till Jan 1, to be revisited with businessmens help.

KARACHI, November 07, 2009 (Balochistan Times): Karachi Chamber of Commerce and Industry (KCCI) and Federal Board of Revenue (FBR) have agreed to revise FBRs sales tax returns e-filing system which has led to declaration of around 10,000 tax-payer companies as Risky and In-active and created serious problems for these companies to operate. During a meeting with KCCI members here at the Chamber, FBRs Domestic Operations Muhammad Ramazan Bhatti agreed to the demand of KCCI leadership that FBRs existing sales tax collection automation system needs to be revisited and made as trade promoter instead of trouble creator for business people who have filed their returns electronically. The scheme, which is a part of FBRs automation drive, would remain suspended till 1st January 2010, when it is overhauled with detailed consultation with stakeholders/business community. KCCI announced its 10 to 12 member committee headed by its former president Haroon Farooki. It will be represented by all major sectors of the economy. By declaring sales tax e-filer companies as Risky, FBR has barred their customers from entering any kind of dealings with them. KCCI leadership and the members maintained that the companies filing their sales tax returns electronically were not intimated by FBR to explain their positions or rectify their defaults, if any before placing these as Risky, Inactive or Active taxpayer. KCCI members claimed that FBR system had many flaws and did not show complete data about e-filers. Instead of bringing perfection into its system, FBR has tried to escape its responsibilities by stamping e-filers as Risky or Inactive. Some KCCI members representing various companies declared as Risky or Inactive borough with them complete documents /data and challenged that they were punished for nothing wrong on their end. On demand from KCCI leadership including Chairman Businessmen Group (BAG) Group and former president KCCI Siraj Kassam Teli, KCCI President Abdul Majeed Haji Abdullah, former KCCI presidents M.Zubair Motiwala and Haroon Farooki , and other senior business leaders, the FBR Member Domestic Operation Muhammad Ramazan Bhatti announced that instead of the word Risky the rating like A, AA, B and C would be used for good and poor e-filer companies to avoid any humiliation and damages to any of these companies. Among others, Senior Vice President KCCI Rashid-ud-Din Rashid and Vice President KCCI Jawed Ahmed Vohra were present and raised many questions/queries. KCCI leadership and members assured the FBR team that the Chamber would support this automated system of tax collection but the flaws and deficiencies should be removed first. Mr Bhatti informed the KCCI members that within a month, FBR would launch its new automated system wherein genuine claimants of refunds would get the amounts within next 24 to 48 hours.

(THROUGH ASIA PULSE)