KARACHI, June 14: Tax experts have taken strong exception to Federal Board of Revenue’s (FBR) move regarding withdrawal of policy concessions for tax cases covered under Final Tax Regime (FTR).

These experts pointed out that cases of importers, exporters and contractors are covered under Section 153, where a person’s earning income from dividends and interest income are covered under the Final Tax Regime.

The tax on such cases is deducted at source by banks and the same is considered as final discharge of tax liability irrespective of the fact whether a taxpayer has earned profit or suffered loss.

However, the FBR has withdrawn the FTR through circular No 4(36)ITP/2002 dated April 2, 2012 without consulting stakeholders and tax experts.

The president of Karachi Tax Bar Association (KTBA), Munawwar H Shaikh, also raised the issue with chairman FBR Mumtaz Haider Rizvi and said even in the past such a move was made but was immediately reverted back.

He further said that a few years back field offices of the FBR tried to select cases of importers and exporters who were covered under the FTR for audit.

However, when it was brought to the notice of high-ups of the FBR, the Member Direct Tax (Policy) issued policy directives to filed offices that if cases of exporters are covered under FTR, they should not be selected for audit.

It was also decided that in case of any discrepancy, the same be addressed through amendment of assessment as provided in the law.