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FPCCI seeks protection against untenable demands by tax collectors

RECORDER REPORT

KARACHI: The FPCCI standing committee on legal affairs has called for the protection of tax-payers from untenable demands of the tax collectors.

The committee in its meeting held here at the Federation House, under the chairmanship of Engr. M A Jabbar noted that various taxation laws provide immunity to the tax collectors for all acts considered to have been taken in good faith.

It felt the need for making provisions in the taxation laws so that the taxation officers are made accountable for their decisions which are reversed in appeal. The committee felt that the affected tax-payers should also be provided relief in such cases.

The meeting agreed that the present system in which the tax collectors have assumed the role of prosecution and judiciary simultaneously was against the principle of fair trial. It called for the implementation of long standing demand of trade and industry that judiciary be separated from executive authority for adjudicating in taxation matters.

The meeting also considered various provisions of Sales Tax Act and felt them as coercive and called for rectification. For example the provision of levy of Sales Tax on other taxes and levies paid by the importers at import stage for determining the value of supply was considered as tax on tax, which was justified.

It was also pointed out that the Sales Tax law provides for levy of the tax at different rates for identical economic activities, which was discriminatory and should be avoided.

The meeting also noted that the Sales Tax law encroaches upon the rights given to the private limited companies in the Companies Ordinance as it passes on the liability for payment of sales tax in the case of private companies to all persons who were directors of that company being wound up although their liability is limited.

The meeting felt that since Pakistan is a signatory to the WTO Agreements, it may have changed its laws, particularly those related to intellectual property rights and investments to conform the TRIPs and TRIMs and urged the government to arrange debates and consult FPCCI and other trade bodies before changing country laws in order to keep the national policies for industrialisation and economic growth least affected by WTO rules.

The meeting stressed the need for providing speedy and inexpensive justice to the common man and called for the appointment of administrative judges from within the judiciary at district level to address to the grievances of common man. It suggested that Zakat funds may be utilised for providing justice to those who cannot pay the cost of defence.

It called for changes in laws for recruitment in the civil service so as to produce professionals and specialists and not "Jack of all trades and master of none." Recruitment should be on merit alone and their remuneration should be market-oriented.

The meeting decided to organise seminar on the concept of metropolitan police and invite interior minister and other stake-holders for participation.

The meeting was attended by Managing Committee Members, M Siddique Suleman, Sardar M. Ashraf Khan, Aziz Damji, M. Ilyas Barry and Sheikh Shakil Ahmed Dhingra.