KARACHI - Karachi Chamber of Commerce and Industry (KCCI) President Iftikhar Ahmed Vohra, while expressing deep concerns over selection of 77,500 taxpayers for audit through computer balloting, has asked Federal Board of Revenue (FBR) to provide details of total number of Karachi based taxpayers (Sales Tax and Income Tax) selected for audit in order to fully evaluate the impact of such audit. In a communiqué issued to Chairman FBR Tariq Bajwa, President KCCI further sought details of total amount and percentage of Income Tax, Sales Tax and FED recovered from Karachi based taxpayers in the financial year 2013-14. President KCCI further urged FBR Chairman to hold any further action such as issuance of audit notices or initiation of audit proceedings, until the issue is resolved in consultation with KCCI and other chambers of commerce as well as relevant trade bodies.

Iftikhar Vohra was of the view that FBR is taking the easy way out to enhance revenues by squeezing the same set of taxpayers who are already paying their taxes on regular basis, instead of making intensive efforts for broadening tax base by identifying new taxpayers and getting them into the tax net. 

“KCCI takes exception to the arbitrary decision by the FBR to increase the percentage of the number of cases selected for audit to 15 percent”, he added.  Karachi contributing nearly 65 percent of total tax revenue of Pakistan and does not have the capacity to further increase the quantum of Income Tax and Sales Tax due to adverse conditions and unfavourable business environment in city, he added.

It would be appropriate for FBR to publicise the relevant data and collection figures for each region to correct this perception, he stressed, adding that KCCI will not accept any discriminatory and arbitrary increase in number of cases selected for audit in respect of Karachi based registered persons.