Business owners claim that the Federal Board of Revenue (FBR) is acting desperately by taking actions that are deteriorating the country’s economic climate as duty collection declines along with the decline in imports.
Karachi Chamber of Commerce and Industry (KCCI) President Mohammed Tariq Yousuf requested in a statement that the Ministry of Finance extend the deadline for filing taxes under Section 7E of the Income Tax Ordinance 2021 (tax on deemed income) from December 31, 2022, until a solution has been reached amicably by all parties.
According to the business community, Section 7E, added by the Finance Act 2022, violates the terms of Article 142 of the Constitution, he noted.
The FBR was barred from using any coercive measures while court procedures were going on, based on a plea that was also filed in the Balochistan High Court, according to the KCCI president.
He emphasised, “the last date of tax payment should be delayed until the constitutionality of Section 7E is resolved,” noting that many people had been unable to complete tax returns because of the ambiguity.
“To enable all stakeholders to collaboratively identify a solution to this issue, consultation between the business community and the FBR is required.”