Anomalies not removed from budget: ACCA

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LAHORE: The federal government has not removed a number of anomalies from budget documents despite a passage of over one month and debate on different taxes remains continue. The government had imposed carbon tax in the budget, but later after the Supreme Court s decision it replaced it with petroleum levy, sparking a new controversy. Accounting professionals expressed these views at a meeting organised by ACCA Pakistan to discuss Finance Act 2009 and point out anomalies in the federal budget which should be removed.Irfan Ilyas, an FCA, in his presentation highlighted that the share of indirect taxes was 60 per cent of total revenue generation as every tax was being shifted to people. Income tax is a major contributor to direct taxes while major contributors to the overall revenue are federal excise, customs duty and sales tax, all indirect taxes, as manufacturers are shifting taxes to the end-users.

He pointed out that an appropriate forum had not been clearly defined if a case was not solved in the Alternative Dispute Resolution Committee (ADRC). Over 50 per cent cases of customs and sales tax are not solved in the ADRC. Earlier, the committee constituted under the ADR had to make recommendations within 60 days and if not done, the FBR may extend the period for another 60 days. Now, if the committee fails to make recommendations within 90 days from the date of its constitution, the Board will dissolve the committee and constitute a new body, which will decide the matter in 90 days. If after the expiry of that period, the dispute is not resolved the matter will be taken up by the appropriate forum for decision. It was mentioned that advertisements in newspapers and periodicals (excluding classified advertisements), hoarding boards, pole signs and signboards, services provided by stockbrokers, services provided by port and terminal operators in relation to imports excluding stevedoring services and carriage of goods and shipping agents were brought into the tax net, which was good.




Courtesy: The News


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