Audit Policy 2016 is an attempt to pinch the existing taxpayers instead of expanding the tax net: Founders Group LCCI

Lahore, December 13, 2016 (PPI-OT): Audit Policy 2016 of the Federal Board of Revenue is nothing else but an attempt to pinch the existing taxpayers instead of expanding the tax net. Audit Policy 2016 will give new tactics to the FBR machinery to harass the business community therefore business community should be taken into confidence before its implementation otherwise it will cause confrontation between FBR and the private sector. Less than 1% people are paying direct tax while tax-to-GDP ratio is one of the lowest in the world. Situation is demanding relief measures for the taxpayers to expand tax net but situation is quite different and FBR making the existing taxpayers a horrible example for those who are not in the tax net.

This was stated by the top notch of Founders Group at a meeting of the group on Tuesday which was attended and addressed by the Chairman of Founders Group Ijaz Butt, senior leaders Mian Muhammad Ashraf, Syed Mohsin Raza Bukhari, Iftikhar Ali Malik, Tariq Hameed, Sheikh Mohammad Asif, Mian Misbah-ur-Rehman, Shahid Hassan Sheikh, Mian Muzaffar Ali, Farooq Iftikhar, Ijaz A. Mumtaz.

Founders Group leaders said that tax laws under Audit Policy 2016 will cause confusion and problems to a large number of taxpayers and promote tax evasion and discourage voluntary compliance of the taxpayers with the tax laws. They said that unfortunately, Federal Board of Revenue has failed to learn lesson from the gradually reducing number of taxpayers and still evolving policies without taking business community into confidence. He said that it would hamper the procedure of trust building between the government and the private sector.

They said that Chambers of Commerce and Industry and Trade and Industrial Associations have recently warned to observe Black Day against FBR Audit Policy 2016. Federal Board of Revenue should take this warning seriously as if Chambers and Trade and Industrial Associations do so, it would give a bad message to the foreign investors.

Founders Group leaders suggested “Federal Board of Revenue should give targets to its officers to find out new taxpayers instead of wringing the existing ones. Data of costly vehicles from Excise and Taxation Department and frequent travellers could be used for this purpose.”

For more information, contact:
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
11-Shahrah-e-Aiwan-e-Tijarat,
Lahore -54000, Pakistan
Tel: +92-42-111-222-499
Fax: +92-42-36368854
Website: www.lcci.org.pk