22:20
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KARACHI: Business community has a difference of opinion over the latest drive of the Federal Board of Revenue (FBR) that has made it mandatory for businesses to display their National Tax Number (NTN) at place of business. Some say it would help in broadening the tax base while others argue that it would give a rise to corruption in the revenue departments.
“It will broaden the tax base,” argues Shaikh Shakeel Ahmed Dhingra, vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). “On behalf of business community of the entire country, the FPCCI supports the FBR initiatives,” he adds.
The display of NTN is mandatory under the Rule 83 of the Income Tax Rules, 2002 for a person who is drawing income from a business chargeable to tax and one who has been issued with a NTN Card shall display his NTN at a conspicuous place at every place of business.
“The economy was facing serious challenges and generating sizeable revenue through taxing all taxable incomes is need of the hour,” says Dhingra.
Meanwhile, Karachi Chamber of Commerce and Industry (KCCI) condemned strongly the NTN display drive, saying it is a latest ploy to blackmail business community.
“It is only initiated to open more doors of corruption,” said Haroon Agar, president of KCCI. “The FBR is only harassing taxpayers through such tactics,” he added.
He said that it would be a good drive if the FBR launched it with sincerity. “The tax officials are only pocketing money,” he alleged.
Haroon Agar said Karachi contributes about 67 percent of total tax revenue collected by the federal tax authority and therefore businessmen of this city should be taken onboard before taking of any such step.
Broadening of tax base will only be possible through reduction of tax rates and simplifying of tax laws, he added.
The FBR has set a gigantic revenue collection target of Rs2.38 trillion for the current fiscal year. However, average monthly collection shows it is far from hitting the target.
The NTN display drive will help in detecting persons who are running businesses but not paying due share to national exchequer, said the FBR officials.
Some people with ulterior motives, however, are never in favour of the documentation, they added.
In the past, the FBR launched a drive of documentation through a Statutory Regulatory Order (SRO) by making it mandatory to present the details of seller at sale proceeds. However, it was strongly condemned by business community nationwide, which resulted in the suspension of the SRO.
“It will broaden the tax base,” argues Shaikh Shakeel Ahmed Dhingra, vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). “On behalf of business community of the entire country, the FPCCI supports the FBR initiatives,” he adds.
The display of NTN is mandatory under the Rule 83 of the Income Tax Rules, 2002 for a person who is drawing income from a business chargeable to tax and one who has been issued with a NTN Card shall display his NTN at a conspicuous place at every place of business.
“The economy was facing serious challenges and generating sizeable revenue through taxing all taxable incomes is need of the hour,” says Dhingra.
Meanwhile, Karachi Chamber of Commerce and Industry (KCCI) condemned strongly the NTN display drive, saying it is a latest ploy to blackmail business community.
“It is only initiated to open more doors of corruption,” said Haroon Agar, president of KCCI. “The FBR is only harassing taxpayers through such tactics,” he added.
He said that it would be a good drive if the FBR launched it with sincerity. “The tax officials are only pocketing money,” he alleged.
Haroon Agar said Karachi contributes about 67 percent of total tax revenue collected by the federal tax authority and therefore businessmen of this city should be taken onboard before taking of any such step.
Broadening of tax base will only be possible through reduction of tax rates and simplifying of tax laws, he added.
The FBR has set a gigantic revenue collection target of Rs2.38 trillion for the current fiscal year. However, average monthly collection shows it is far from hitting the target.
The NTN display drive will help in detecting persons who are running businesses but not paying due share to national exchequer, said the FBR officials.
Some people with ulterior motives, however, are never in favour of the documentation, they added.
In the past, the FBR launched a drive of documentation through a Statutory Regulatory Order (SRO) by making it mandatory to present the details of seller at sale proceeds. However, it was strongly condemned by business community nationwide, which resulted in the suspension of the SRO.
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