Exporters annoyed on FBR’s notices

Federal Board of Revenue (FBR) has ignited rage among the exporters with its most recent notices, requiring the exporters to submit piles of records to the government authority. FBR has issued notices to exporter
across the country seeking sales tax records under Section 25 of the Sales Tax Act 1990.

The exporters are required to submit a long list of records, which include purchase, supplies invoices and register, utility bills, export documents, monthly production report, etc, as per the notices issued by the field offices
of FBR.

The exporters have cited that as their sector is zero-rated, the queries about the inputs and outputs appear utterly useless. They said that details about the sales and purchases are already mentioned in the monthly sales tax returns
they submit to FBR on regularity. One of the leading exporters, Muzammil Hussain, told the local news reporter that under Section 25, FBR is only legible to issue notices to seek detailed records from the exporters only in the circumstances when there is sufficient
evidence showing that the particular person is involved in tax fraud or evasion of tax.

Hussain further cited that as per Section 38 of Sales Tax Act 1990, no official below the rank of assistant commissioner can issue such notices to enquire or hold an investigation. Hence, the issued notices by the field offices
of FBR are of no legal value under the legislation.

The assistant commissioner has been awarded the power to conduct an audit of the records of the registered person even an earlier audit by the office of Auditor-General of Pakistan has been conducted but such can only happen in
case of a tax fraud. Sending notices to exporters at large makes certainly makes no sense on behalf of FBR.

The Chairman of Pakistan Bedwear Exporters Association (PBEA), Shabir Ahmed, stated that issuance of such notices would only result in a loss of revenue and earnings of foreign exchange as the exporters have to put in their efforts
into a futile activity. He blamed FBR for engaging the exporters in such useless activities and wasting their productive.

It is ironic that when the government wants to recover its dues from trade and industry, harsh and coercive law under land revenue is used but when the government has to make payments, long delays are made which block huge funds
of export trade.

Short URL: https://www.newspakistan.pk/?p=5678

Posted by Farhan Hameed on Dec 8 2011. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry