20000402

SCCI budget proposals

'IT exemption

limit should be

raised to Rs 75,000'

RECORDER REPORT

KARACHI: The Sukkur Chamber of Commerce and Industry (SCCI) has proposed that the exemption limit for income tax should be raised to Rs 75,000 and be linked with annual inflation rate.

In its budget proposal for the fiscal 2000-2001, the chamber suggested that income tax slabs for (1) Rs 75,001 to Rs 200,000 at five percent, (2) Rs 200,001 to Rs 300,000 at 10 percent, (3) Rs 300,001 to Rs 400,000 at 15 percent and (4) Rs 400,001 and above at 20 percent.

The chamber said that the present direct taxation structure was exploitative in nature and penalised the honest assessees while rewarding those willing to "accommodate" such officials who have their personal interest more at heart.

To enable the assessees to pay their due taxes without fear of harassment, the chamber proposed various steps including that all returns would be under self-assessment scheme even where loss had been declared.

Ñ If within nine months of filing of the return no discrepancy was detected by the assessing officer, the return would constitute final assessment.

Ñ If the assessing officer detected evasions and has definite proof of concealment by the assess, he should send a written intimation for seeking all clarification from the assessee giving two weeks time from the receipt of the notice for such clarifications to be sent in writing by the assessee. If need be, the assessee may be given a total of three such opportunities to reply to the queries of the assessee and/or his authorised representative, may constitute an offense.

Ñ In case the assessing officers is not satisfied with the replies submitted, he should file his reference with the first appellate forum along with his assessment and details.

Ñ The appellate forum should be under the judiciary and not under the Central Board of Revenue (CBR).

Ñ A copy of the reference made by the assessing officer alongwith his proofs for substantiating his assessment should be provided to the assessee within a week of his filing appeal with the appellate authorities.

Ñ No demand should be created against the assessee unless the reference of the assessing officer on the basis of para (d) above is upheld by the first appellate forum.

Ñ Tax rate for all limited companies is proposed at 25 percent except for non-listed limited companies, audited by them and in case of detection of tax evasions should be liable to penalties alongwith the company.

Ñ Wealth tax needs to be abolished.

Ñ In Pakistan, policies are not consistent.

Policies changed with the change in governments and the new government, scraps all amnesty schemes of its predecessors and starts harassing those not acting on its advice. Therefore, consistency of the policies be constitutionally guaranteed.

Ñ The immunity scheme be given wide publicity and the assessees made aware of the department's ability to detect un-disclosed assets from the records at present available to the authorities.

Ñ To broaden the tax-based, wherever income is generated it be taxed accordingly, and where possible the tax be deducted at source.

Ñ The present taxes in the form of stamp duties and local taxes on transfer of property are very high and punitive. The maximum rate of such taxes needs to be revised to one percent.

Ñ In order to build confidence among the tax payers, the association suggested that constitutional guarantee be provided so that the tax rates would not be increased, except in case of a state of declared war.