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Second round of govt-FPCCI talks tomorrow

RECORDER REPORT

KARACHI: Finance Minister Shaukat Aziz will have another round of talks with an FPCCI delegation in Islamabad on January 22, in his quest for ways to keep members of the business community "cool" and has advised them to be patient in seeking solution to their problems which are not the creation of the present government.

The first meeting was held in Islamabad on January 4, and according to a FPCCI press release issued on the occassion, the finance minister had promised to resolve some of the issues within seven days but none have been taken up by the government so far,

The most burning issue these days is that of sales tax and according to the FPCCI press release, the finance minister had promised to resolve the issue of payment of arrears without penal action within seven days. So also the issues relating to three percent additional sales tax, new payments through cheque/bank draft for amounts of Rs. 50,000, one audit of records for sales tax, turnover limit of industry were promised for resolution within seven days.

The finance minister had agreed to allow Riaz Malik to resolve the issue pertaining to sales tax and had directed him accordingly. Riaz Malik held a series of meetings with members of the business community in Karachi on the issue of sales tax for a feed back and must have briefed the finance minister about their feelings on the issue.

Engr. M.A. Jabbar, a member of the managing committee of FPCCI, was more vocal, to the discomfort of his colleagues present at the meeting, as he, more than anybody else, stressed the need for protecting tax payers against the high handedness and untenable demands of tax collectors. The matter of accountability of tax assessing officer on orders which were reversed at judicial forums and seperation of prosecution and adjudication in the taxation law also came under discussion due to increase in the number of flimsy orders passed by tax collectors for harassment of tax payers. FPCCI had demanded protection for tax payers.

A largely attended meeting of the representatives of chambers and associations from all over the country held at the Federation House here on January 14 had also expressed concern that the firm assurance given by the finance minister to a delegation of FPCCI on January 4 that the urgent issues pertaining to sales tax will be resolved in a week's time has not been fulfilled.

The meeting had also stressed the urgent need for the withdrawal of wealth tax as promised by the CBR so as to divert resources for the much required investment for moving the economy forward.

The FPCCI valuation committee has already rejected the new procedure for the valuation of imported goods on the basis of valuation data without consulting FPCCI and the trade bodies.