KARACHI: Following a consistent demand from the business community, the federal government in a major move on Friday announced “no-harassment policy” from the Federal Board Revenue (FBR), withdrawal of notices to businessmen from the revenue watchdog and assured beginning of self-assessment scheme very soon wherein businessmen would have to declare their incomes “honestly” in their returns.

However, to keep a check, the government has planned to use option of third-party audit where it would be necessary but role of the FBR would be further curtailed in fixing the declaration in returns.

The assurance came from the government’s top economic team which met key businessmen, industrialists and leaders of the business fraternity in Karachi. Different proposals came under discussion and both sides agreed to continue coordination for better results and effective economic policy.

The government team, led by Finance Minister Shaukat Tarin and comprising Special Assistant to the Prime Minister on Finance and Revenue Dr Waqar Masood and FBR Chairman Asim Ahmad, visited the Overseas Investors Chamber of Commerce and Industry, Pakistan Business Council and Federation of Pakistan Chambers of Commerce and Industry and met their office-bearers and key businessmen.

Economic team meets business community, announces withdrawal of notices issued to them; self-assessment of income scheme soon

“In future, there would be self-assessment scheme wherein the businessmen would have to declare their incomes honestly in their returns,” Mr Tarin to businessmen.

“However, the government would use third-party audit option in case of doubt in declaration in returns. The FBR would remain out even in these cases. The filer would have to respond and satisfy third-party audit team. Let me assure you that there would be no harassment from the FBR and even the notices issued [to businessmen] would be withdrawn,” he added.

The finance minister sought business community’s cooperation in reviewing new policies on trade, investment and other economic issues, including restructure of the FBR. He admitted that food prices had witnessed an increase and the prime minister was “very much concerned” about the situation, but claimed that the government’s efforts had started yielding results and things started changing positively.

“Together with you, the PTI government will make Pakistan an economic power,” he said. “I assure you, you will be heard and your problems will be resolved. If you will not be satisfied, the country cannot prosper. In pursuance of the prime minister’s vision and directives for enhanced interaction of the government functionaries with the business community of the country and due consultation on important economic issues for result-oriented policies and programs, I would be holding quarterly meetings with you to get your inputs on key economic decisions.”

Responding to one of the traders’ concerns, Mr Tarin said core inflation was at seven per cent and if the government succeeded in bringing it down, the State Bank of Pakistan would have space to cut its policy rate.

He appreciated the support from low-scale traders to address the issue of the smuggled goods, which were being sold in retail market, in a bid to save the local industry and the country’s economy from further damages. “The prime minister trusts you and is always ready to meet and listen to you,” he said.

“The government wants to take the business community along as the major stakeholder and welcomes concrete recommendations from them. We shall debate on your recommendations in such a way that the IMF conditions may not breach as well as your interests are guarded. You are partner and you would feel that partnership,” he added.

Published in Dawn, August 21st, 2021