LAHORE - The Federal Board of Revenue has declared to withdraw the compulsion of Form-D in Income Tax returns following the protest by the traders in the federal capital.

The tax department agreed to exempt the compulsion of Annexure D in Income Tax returns form, seeking minor information of travelling, family expenses, education and other similar expenditures. The notification in this regard will be issued soon.

This was decided in a meeting of FBR Chairman Mumtaz Haider Rizvi with the representatives of trade bodies after a sit-in by the small business owners in front of the FBR Headquarters.

A press release issued here on Thursday said that All Pakistan Anjuman-e-Tajiran (APAT) delegation, including central chairman Khawaja Shafiq, president Mian Abdul Mannan, general secretary Naeem Mir and several other traders’ representatives from across the country held a meeting with the FBR chairman, compelling him to review the decision to seek additional information in tax forms. The APAT delegation said that the traders were opposing inserting form-D in the tax documentation and demanding of the government to remove clause from the documentation.

The tax authorities announced that they would not audit Annexure D information till 2014, said APAT central general secretary Naeem Mir.

He said that the delegation of APAT, comprising the representatives from all provinces, will again meet with the FBR team on April 3 and present it the charter of demand from the traders. Discussing the salient features of the demand, he said that traders were against 25 percent tax on AOP and wanted the government to fix it in accordance with the tax rate of proprietorship.

APAT general secretary said that traders also wanted the tax department to withdraw the Annexure D from Income Tax Return Form for a permanent basis instead of deferring it till 2014.

As the Annexure D has been included under the Act of the Parliament, trade bodies will contact with all political parties and convince them to table a resolution against this Annexure.

Opposing the turnover tax, he said that when traders already paying income tax as well as sales tax, what is the justification of Returnover Tax.

He warned the Federal Board of Revenue (FBR) of massive and nationwide agitation if the largely opposed and controversial SRO 191(1) 2012 was not withdrawn immediately.

He said that the SRO will have devastating effect on the businesses in Pakistan as the compulsory requirement of NTN or CNIC number of each and every purchaser or seller is practically almost impossible. He said that given the literacy rate in the country and lack of compliance culture in general masses it will be very difficult to obtain such personal details from the buyers or sellers of the goods.

Naeem Mir asked the FBR to also include at least one representative of the traders’ body in consultative committee of the department, which are real stakeholders.

He criticized the prolonged, hectic and iniquitous system of refund claims clearance, saying that business community’s billions of rupees have been stuck up. He said that the corrupt officials of the FBR have fixed 25 percent commission for clearing each and every refund claim.

Regarding National Tax Number, he said that earlier it was issued by the central office of the FBR, which was transparent and easy process. But as soon as the task of issuing NTN has been assigned to the regional offices of the FBR, the traders community is facing severe hardships, as the  regional office do not issue NTN without influence and bribe.

He said that on the demand of the FBR, All Pakistan Anjuman-e-Tajiran will constitute the regional trade representatives committees to work with sub offices of the tax department and resolve the issues at district level.