February 04, 2015 – BR Report –
Chairman APTMA S M Tanveer has condemned the Sales Tax Department of the FBR for launching malicious campaign against the textile industry, saying that all such tactics would damage the business environment in the long run. Referring to a malicious campaign of releasing frivolous information along with specific names of textile mills in leading newspapers by the Directorate of Investigation, he said Minister Finance Ishaq Dar should take stock of the situation and take the responsible ones to the task immediately.
He said the fraud committed by a trader cannot be attributed to the whole industry, especially when the spinning mills have thrice satisfied the Sales Tax Department on strict observance of the requirements of SRO 1125 and SRO 283 (I) 2011. The department cannot hold the industry responsible for the wrongdoing of a trader who has sold the duly purchased material to an unregistered buyer, he added.
According to him, the Sales Tax Department has always found it easy to malign the organised corporate sector while deliberately ignoring the fact that the spinning mills have always ensured that the buyers’ name is present on the active taxpayer list, all payments are made through banking channel and applicable tax has been paid duly.
He apprehended that the Sales Tax Department was hiding its inefficiencies and inabilities to check the unregistered buyers by printing the names of sound corporate entities for merely a fraud of Rs 7.6 million against the transaction of Rs 762 million. He said the industry circles are of the firm view that the Sales Tax Department has initiated the malicious campaign against the corporate sector only after the industry demanded early release of stuck up Rs 42 billion refunds.
Chairman APTMA has urged the Chairman FBR to stop the Directorate of Sales Tax Department to pass on frivolous information to media and make sure that only the FBR spokesman be allowed to release information regarding taxpayers through official media.-PR