July 9, 2002	Tuesday	Rabi-us-Sani 27,1423

KARACHI, July 8: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has submitted the 2002-03 budget anomalies to the federal finance minister and chairman anomaly committee for consideration.

The recommendation has been prepared by the FPCCI Anomaly Committee after receiving input from various chambers, associations and individual companies.

The FPCCI anomaly committee has urged the government to provide a minimum cushion or difference in customs duty of at least 10 per cent between imported finished products and the imported processing materials for local manufacturing of similar products competing imports.

Import of plant, machinery and equipment, not locally manufactured, should be allowed at zero rated customs duty in order to encourage industrialization and attract investment for BMR, says a press release of the FPCCI.

The committee demanded that indigenous investments made by locals should be non-discriminatory in respect of extent of exemption as provided to the non-locals.

It further suggested that the disputes regarding local manufacturing and level of protection or otherwise should be resolved through Engineering Development Board (EDB) by inviting stakeholders.

It was urged to make the tax judicial system independent from the executive and in conformity with the constitutional requirement that judiciary has to be separate and independent.

The committee also called for allowing retention of audited accounts by businesses for three years instead of a present five years.

It is also proposed that only one-time notice be issued to the income tax assessee instead of making queries on a continuous basis and the appeal fee for revision of assessment under section 129 of the Income Tax Ordinance should be abolished to provide inexpensive and expeditious justice.

The anomaly committee further recommended that under section 136(I) of the ITO, 1979, the taxpayer should be allowed to file direct appeal to the High Court if he aggrieved by the order passed by the Income Tax Appellate Tribunal or by the Commissioner of Income Tax Appeals.