Call for removing tax anomalies

KARACHI (PPI) - The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Chairman Federal Board of Revenue (FBR) to the fact that mere extension of date till 31st October 2010 for income tax returns will not resolve the matter and viewed that it is essential that tax anomalies are removed in the best interest of justice and to facilitate the tax payers. President UNISAME Zulfikar Thaver said that the website of FBR and online facility service is not functioning efficiently since it is overburdened and urgently needs to be made capable of handling huge number of returns awaiting to be filed online. Secondly, he pointed out that the step motherly treatment meted out to association of persons (AOP) who are liable to pay income tax at the rate of 25 percent without exemption of income up to Rs.300000 given to individuals is unreasonable and beyond comprehension. He also pointed out that if income exceeds Rs.300000 even by a single rupee then he has to pay tax at the rate of 7.5 percent on the total income and not on the exceeding income which negates the exemption. Thirdly he urged the FBR to re-examine the tax of 0.3 percent on cash withdrawals exceeding Rs.25000 in a day and also applicable on pay orders, demand drafts and on line transfers which is burdensome and considered heavy as the businessmen is already paying various types of taxes on transactions. Finally he invited the attention of FBR to the reformed General Sales Tax (GST) which is actually a new label for Value Addition Tax (VAT) and urged the FBR to exempt the SMEs from this burden which will be a setback to the sector which is already in turmoil. He called upon the policy makers to respect and abide by the SME policy bill passed in the National Assembly wherein priority is given to the sector and promotion and development envisaged and defined in the interest of economic growth.

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