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Members of the business community trading in computers and parts met the Prime Minister’s Advisor on Revenues Senator Mr. Haroon Akhtar Khan at FBR today. Senior Member Tax Policy Mr. Shahid Hussain Asad, FBR’s Director General (I&I) Mr. Haroon Tareen and Member Facilitation Mr. Nadeem Dar also attended.
Pressing issues faced by traders, especially in reference to flying invoices and FIRs by FBR’s investigation arm (I&I) against traders who purchased / sold to those using flying-invoices, were tabled by traders. The Advisor assured that FBR does not hold a guilty a party in a transaction simply because the other party is generating a flying invoice.
Furthermore, the FBR’s recently launched Active Taxpayers List and Black-list now allows traders to instantly check from FBR website if the other party is blacklisted or not, thus enabling them to avoid business with blacklisted or non-active parties.
However as a permanent solution the Advisor informed that FBR is already involved via the Taxation Reform Commission (TRC) to see possibility of imposing a single tier sales tax and FBR team is to meet IMF in December on this. If this is found doable, a single tier sales tax will address the issue of non-tax paid items now being sold at retail level, and assist honest traders in being tax compliant.
The Prime Minister’s Advisor also agreed to the request of traders to undertake tax awareness and education seminars for small traders, and Mr. Shahid Hussain Asad Senior Member Tax Policy informed that a single page simplified tax Return in Urdu and a single page simplified wealth statement also in Urdu, is under study for small traders.
The meeting ended with traders urged to bring forth their proposals on revenue improvement via the business representatives on the three committees formed on the bank withholding tax issue which are also examining other proposals.