The Federal Board of Revenue (FBR) has announced withdrawal of audit notices issued to commercial importers. The decision was taken at a meeting held Friday between Rehmatullah Wazir, Member ILR (Operation) and Zubair Tufail, President Federation Pakistan Chamber of Commerce and Industry (FPCCI) to discuss various issues related to the FBR being faced by business community. The meeting was also attended by Fayyaz Magoon, Vice President FPCCI, Shakil Ahmed Dhingra, Chairman FPCCI Standing Committee on FBR Affairs, Mazhar Nasir, Convenor for Budget Proposal FPCCI and other officials of the FBR.

It was decided that there will be no audit of commercial importers and all notices will be withdrawn. It was also agreed that as commercial importers enjoy exemption from audit therefore notices under section 25 will not be issued in normal course. It was also agreed that Sec 37 will not be invoked without any solid proof of evasion with the prior approval of chief commissioner.

The issue of fake and flying invoices was also discussed in detail. The FBR officials said fake and flying invoices are used for fake refunds and unlawful input adjustment and it is hurting the exchequer to the tune of billions of rupees. The FPCCI representative said that in case of non-registered person, 2 percent further tax is one of the major reasons of fake and flying invoices. It was also decided that where further tax of 2 percent is paid on goods under SRO 1125, verification of unregistered buyer may not be asked and in this regard, further deliberations will be done in next meeting.

Copyright Business Recorder, 2017