Progressive Group of the Lahore Chamber of Commerce and Industry has demanded of the Federal Board of Revenue to expedite the process of issuance of income tax exemption certificates under Section 153 & 159 of the Income Tax Ordinance 2001 on imports. "When the tax is being collected in advance then why so much hurdles and delays in issuance of exemption certificates?" asked the Group's President Khalid Usman in a statement on Friday. The Group has received a number of complaints from its members that the FBR officials are not issuing certificates despite the fact they have paid tax in advance.

Unfortunately, the officials were demanding for more deposit of advance tax for issuance of certificate along with hefty bribes which is a sheer injustice, he added. He said non-issuance of income tax exemption certificate is causing hardships for the businesses. Normally the certificate is issued for the period of one year but now it is being issued for six months that is creating multiple problems for the businesses, he added. He said the delay in issuance of income tax exemption certificate is encouraging the menace of smuggling that would destroy the national economy and would also open up the floodgates of corruption.

All the leading economies were giving incentives to expedite economic activities in their respective countries but in Pakistan the people who are sitting at the helm of affairs are doing otherwise at this point in time when almost all the businesses are facing a number of internal and external pressures. He said the federal finance minister should take stock of the whole situation and issue directions to the officials concerned to issue income tax exemption certificates under the relevant laws.

Copyright Business Recorder, 2018