Prime Minister’s Advisor on Revenue Haroon Akhtar Khan has assured the IT industry, computer vendors and commercial importers of IT equipment that the Federal Board of Revenue (FBR) will take measures to facilitate legitimate trade including rationalisation of taxes, but tax evaders would not be spared at any cost. This was stated by Haroon Akhtar during a meeting with a delegation of Pakistan Computer Association (PCA) here at the FBR House here on Wednesday.
The PM Advisor on Revenue patiently heard the proposals of the computer industry to fix the duties and taxes on the import of laptops. The IT industry had already proposed to the FBR to fix duties/taxes of Rs 3000 on the import of laptops in the budget 2015-16 which, if accepted and implemented, would have increased the government revenue manifolds. All IT products, including laptops and desktops should be brought under the full and final import settlement bill.
The industry has conveyed to the FBR that the ongoing phenomenon of increased sale of smuggled IT equipment in the market causing huge revenue loss and damage to the business of the legitimate importers and compliant vendors of the computer sector. The extra burden of taxes and unnecessary harassment by tax department is also hampering business of the computer industry. The sales of documented sector are decreasing day by day and markets flooded with smuggled IT equipments.
The existing taxation structure on computer IT equipment particularly at import stage has created serious distortion between the legal imports and informal channels. The IT related items have now become a necessity in homes and offices. The computer sector is paying a wide range of taxes to ensure documented imports along with payment of taxes at domestic stage.
On the conclusion of meeting, Munawar Iqbal, Chairman PCA applauded government’s tax-reform program and said this would greatly help in addressing the issues of non-tax paid items faced by the retailers and vendors. He said this will help bring more traders in the tax net and generate more revenue to the FBR. He said the traders welcome the consideration of a single-page simplified wealth statement and a single-page tax return in Urdu for the benefit of the small traders. He said these steps will definitely help the government in reaching its revenue target.
A PCA Delegation comprising Munawar Iqbal, Chairman, Basharat Baloch, Jamal Yousaf, Senior Vice Chairman, Yasin Faujdar, Mobeen Ul Haq, Asif Shahzad, Muhammad Musa, Arif Naseem, Qaiser Mahmood, Zaka ur Rahman. Abdullah Malik, Naeem Siddiqi, Khawar Idrees, Umar Farooq held a two-hour long meeting with Haroon Akhtar Khan, Advisor to Prime Minister on Revenue at the FBR. The FBR was represented by former Senior Member Tax Policy Shahid Hassan Asad, DG I & I Haroon Tareen and Members Facilitation Nadeem Dar and other officials from I&I Wing.
PCA Chairman raised the issues of ITP valuation on IT products, the Valuation guidelines, tax reforms and GST on IT Products, including whether imported legally and illegally through airports and Karachi seaport in collaboration with custom officials and Khepias. At this point, the Minister intervened to ask about this situation from DG I & I whether this kind of activity is going on or not.