KARACHI - Member Domestic Operations (South), Federal Board of Revenue, on the demand raised by the Chairman Businessmen Group and former President KCCI Siraj Kassam Teli and President Karachi Chamber of Commerce and Industry, Abdul Majid Haji Muhammad announced pending of non-active or active but risky status in e-profile, remove risky list from FBR website till 31st December 2009 and sought KCCIs proposal for improving the system. It was agreed that the term risky will not be used and a committee comprising of Member Domestic Operation (South), FBR and Vice Chairman and former President KCCI, Haroon Farooki will consult and finalise the steps and procedures for e-profiles of the tax-payers; what is in the best interest of tax-payer and FBR. In future, after the decision, a minimum two-week notice will be given to the taxpayers to correct and clarify profile. Member Domestic Operations (South), FBR, Muhammad Ramzan Bhatti made this announcement at meeting held on Saturday at KCCI, to address and resolve the issue of change in e-profiles, terming the tax-payer risky with Director General, RTO Karachi, Imtiaz Ahmed Barakzai, G.M. PRAL, Imtiaz Ahmed and other officials participated in the meeting. Chairman, Businessmen Group and former President-KCCI, Siraj Kassam Teli, demanded the removal of risky list from FBR website and also remove risky term reflecting in the e-profiles of tax-payers, specifically the commercial importers. He suggested for a committee comprising of FBR officials and KCCI representatives and gave the name of Vice Chairman Businessmen Group and former President KCCI, Haroon Farooki to lead the KCCI representatives. The Committee Members from KCCI will comprise of a member from various sector. Siraj Teli focused that KCCI appreciates all the positive measures taken, however FBR should consult with stakeholder before executing new measure to avoid its adverse effects. President KCCI Abdul Majid Haji Muhammad drew the attention of Member, Domestic Operations (South), FBR, towards difficulty and problem being faced by KCCI members as several of its members sales tax profiles have been changed to Inactive or Active and Risky. APP adds: The scheme, which is a part of FBRs automation drive, would remain suspended till 1st January 2010, when it is overhauled with detailed consultation with stakeholders/business community. KCCI announced its 10 to 12 member committee headed by its former president Haroon Farooki. It will be represented by all major sectors of the economy. By declaring sales tax e-filer companies as Risky, FBR has barred their customers from entering any kind of dealings with them. Karachi Chamber of Commerce and Industry (KCCI) and Federal Board of Revenue (FBR) have agreed to revise FBRs sales tax returns e-filing system which has led to declaration of around 10,000 tax-payer companies as Risky and In-active and created serious problems for these companies to operate. During a meeting with KCCI members here at the Chamber, FBRs Domestic Operations Muhammad Ramazan Bhatti agreed to the demand of KCCI leadership that FBRs existing sales tax collection automation system needs to be revisited and made as trade promoter instead of trouble creator for business people who have filed their returns electronically. He said that about 80 percent of the importers have been placed under the heading Risky by the FBR. Therefore, many of KCCI members who are also tax payers and made purchases of goods from importers / suppliers have stopped making payments as their suppliers have been classified as Risky. The above action of FBR has created harassment among business community which might result in huge losses to the government as most of the taxpayers have stopped purchasing / selling from these (Risky) taxpayers/ KCCI members, he added while demanding rectification for the problem. Vice Chairman and former President-KCCI, Muhammad Zubair Motiwala lamented that KCCI and other stakeholders were not taken into confidence before introducing the change in the system therefore FBR is facing adverse reaction. He voiced that the term risky on e-profiles has highly affected the business of buyers as well as suppliers. He suggested that FBR is aware about the willful and non-willful tax-payer and it should evolve strategy for discrimination between both and handle them accordingly. He was of the view that to finally resolve the problem, ATT, Customs Regulations and under-invoicing issues needs immediate revisit. Member Domestic Operations (South) FBR said that the system is under experimental phase. He welcomed the suggestions of KCCI to improve the system under joint committee of FBR and KCCI and said that after deliberations, the system will be reintroduced from 1st January 2010 and FBR will send an e-notice to tax-payer for fulfil the shortcoming and in case of no response from tax-payer, system will highlight the status of tax-payer accordingly.