Abrupt up gradation in Pakistan Revenue Automation Limited System create problems for Business Community in tax adjustments, Says Zakaria Usman

Karachi, April 07, 2014 (PPI-OT): Zakaria Usman, President FPCCI stated that Pakistan Revenue Automation Ltd (PRAL) has made abrupt and arbitrary changes in the system for the adjustment of sales tax for manufacturing industries due to which they are facing unnecessary hurdles in getting the adjustment of sales tax.

He further stated that The FBR introduced the automated system of sales tax adjustment through PRAL to facilitate the importers and manufacturers and to enhance revenue of the government. But now it seems that in the name of up gradation of automated revenue services they are trying to bring the business community in various difficulties.

Zakaria Usman, said that many industries have to pay customs duty, income tax and sales tax on manual challans at import stage due the limitations of automated system. These payments are received by the custom authorities after due vetting and clearance of goods at import stage. However, the same is not being allowed to be adjusted in the system which is usually done in the monthly sales tax returns filed by the industry.

Mr. Shaukat Ahmed, Senior Vice President and Mr. Ismail Suttar, Vice President on this occasion also added that a similar issue was faced by the industry regarding the FED adjustment on oil imports. The industry had to run pillar to post to get that adjusted.

After many months of efforts, FBR allowed it for the industry. However, the system was not upgraded to allow all industry to claim the rightful adjustments and rest of the industry in suffering from the inefficiency and indecision of the FBR authority.

The FPCCI Chief further said that the manufacturing industry which is the engine of economic growth is in hardship due to slow economic growth. The manufacturing industries provides economic activity and employ large number of people. It is unfair with them to make appeals to the authorities for claiming the tax adjustments.

He said that the business community is continuously complaining to relevant RTOs, PRAL and Customs Authorities about the problems which in fact, they are facing since July, 2013 after the abrupt revision of the automated system of PRAL but no avail.

For more information, contact:
M. A. Lodhi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk