The Manufacturers and Traders Association of Pakistan (MTBA) urged Prime Minister Shehbaz Sharif to restrict the powers of the Federal Board of Revenue (FBR). The MTBA raised concerns regarding the increase in FBR visits, inspections, raids, and searches near the end of the reporting period.
Furthermore, the MTBA alleged that the FBR was employing its powers to secure immediate tax deposits to meet revenue targets. The association mentioned that the FBR has enforcement powers under sections 38 and 40 of the Sales Tax Act, 1990, alongside section 175 of the Income Tax Ordinance, 2001.
Businesses, the MTBA stated, are facing pressure to make payments that are not legally due. Pressure exists, the MTBA alleged, to account for future sales or to arrange advance tax deposits.
The MTBA proposed that enforcement actions must conclude legally, requiring a show cause notice and a formal hearing. Scrutiny of voluntary payments made during or following raids and inspections is also called for by the MTBA.
Payments should only be considered voluntary if they are made without any threat, pressure, or undue influence, the MTBA stated.
