Sheikh also called for simplification of taxation system and said a simplified and friendly taxation system would encourage businessmen to come into the tax net. Our government should rationalise tax tariffs instead of making any increase in their rates, he added.
The economy cannot grow amid major issues including double taxation and undue delay in refund claims, therefore, the government must resolve such issues as soon as possible, he said and urged the Federal Board of Revenue (FBR) to pay attention towards issue of double taxation which has become a major hurdle in the running of smooth businesses. After the 18th Amendment, provinces have developed their own legislations and rules for the administration of sales tax on services, he added.
FBR chief also urged the FBR to expedite releasing the stuck-up sales tax and income refund claims that is creating liquidity crunch for the industry. The FBR is hampering the growth of the most productive sectors by denying the exporters and manufacturers their right of refund of Sales Tax and Income Tax, he added. The delay in release of huge funds that runs into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units, he said.
PIAF senior vice chairman and vice chairman said the process of getting refunds is so lengthy and cumbersome that takes months for manufacturers or exporters to actually get the refunds claims. The FBR Chairman should look into the matter and ensure early release of Sales Tax and Income Tax refunds, they said. They urged the federal and Punjab governments to reduce the undue interference of government departments in the business activities to ensure business friendly atmosphere.