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Different tax slabs led to bogus companies registration

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(Globalpost/GlobalPost)

Two different tax slabs by the Federal Board of Revenue (FBR) led to registration of bogus companies in the country. This was pointed out by the acting chairman All Pakistan Textile Mills Association Wisal Monnoo, who said that the textile industry is fully tax compliant and responded responsibly to pay Rs4 billion to the FBR on behalf of unregistered buyers.

He said APTMA members are honest and fully law compliant businessmen and there was a wrong impression that textile industry has evaded tax. In actual, it was the liability of the buyer and not the seller. Those who claimed as zero rated referred to the FBR website where their names were available as operational and tax compliant companies.

The industry made no mistake by selling raw material to such buyers. He said 95 percent of the industry has paid outstanding liability and remaining 5 percent are likely to dispose of the liability by 15th of April.

Group leader APTMA Gohar Ejaz said the industry cooperated with the FBR to save its image. We have averted the crisis and the industry complied with the SRO179 and paid Rs4 billion to the FBR. The industry took an initiative unprecedented and avoided to approach the courts of law. He said the buyers’ tax evading was fulfilled by the APTMA members in the larger national interest.

Speaking through cell phone on the occasion, Chairman FBR Ali Arshad Hakeem said the FBR detected anomalies in the tax system some time back. Eventually, we evolved a strategy and engaged the APTMA and recovered billions of rupees. He said this practice will be extended to other sectors of the industry as well, he added.

He said the FBR avoided to scandalise the industry and ensured smooth disposition of tax liability while keeping the continuity of textile business intact. The FBR has extended date for final settlement of tax liabilities up to 15th April for further accommodation.

http://www.globalpost.com/dispatch/news/asianet/130403/different-tax-slabs-led-bogus-companies-registration