Karachi: 32 Chambers of Commerce and Industry and Trade Associations have decided to stay away from the budgetary consideration process by not submitting any proposals or recommendations for the upcoming budget of FY 18. The decision was taken at a convention of Chambers of Commerce and Industry and Trade Associations from all over Pakistan organized by the Karachi Chamber of Commerce & Industry on Monday, to discuss and formulate a joint strategy seeking the resolution of issues and problems faced by trade and industry all over Pakistan due to harassment, extortion, and arm-twisting by the taxation authorities that have immense discretionary powers and utter disregard for the budget proposals submitted by the chambers and associations every year. The Chambers and Associations which participated in the convention included all major Chambers and Trade & Industry associations and their nominated representatives who provided their views, suggestions, and input for the joint strategy to counter the arbitrary and unilateral approach of FBR officials, policy-makers and Ministry of Finance. After due deliberation, participants of the convention agreed on a joint strategy including the decision not to submit any proposals or recommendations for the Federal Budget for the fiscal year 2017-2018. The joint communiqué issued urged the Ministry of Finance and Federal Board of Revenue to first implement Budgetary Proposals which were submitted by the participant chambers and associations during the last 4 financial years since these had been entirely ignored and disregarded. They believed the submission of any new proposals would be an exercise in futility. The participating trade bodies’ representatives urged the Ministry of Finance and Federal Board of Revenue to withdraw what they called “draconian provisions” and laws that gave immense discretionary powers acquired through the last four Finance Bills, to the officers of Inland Revenue and field formations. This they asserted was a core issue and resulted in hardship, the loss of productivity, and mental torture to the business community. These laws have kept a large number of potential tax-payers out of the tax regime; in fact, they act as a deterrent to broadening the tax-base and result in promoting a culture of tax-evasion. All chambers and associations who had given their input and taken part in the proceedings of the Tax Reforms Commission formed by the Government with the commitment that its recommendations will be implemented in letter and spirit, have expressed their dismay and disappointment over the failure to adopt the recommendations on which a complete and total consensus was evolved among stakeholders, government functionaries, FBR officials, and tax professionals. The commitment to implement these recommendations must be fulfilled immediately. The Chambers and trade bodies further suggested that no changes should be made in tax laws – including the Income Tax Ordinance 2001, Sales Tax Act 1990, Customs Act 1969 and the Federal Excise Act – through the Finance Bills suggesting that the Bills should be confined to only budgetary and fiscal measures. Any changes in the tax laws and provisions should be tabled through separate bills in parliament and passed after necessary debate and consultation with stakeholders. All Chambers and trade bodies strongly denounced the misuse of discretionary powers by the officers of IR under Sections 38A, 38B, 40A, 40B, 176 and 177. They urged the government to withdraw the sections immediately and restrict the enforcement of the aforesaid sections, otherwise it would be responsible for the consequences which may force them to go to any means and action possible that could have negative ramifications for the revenue. The Chambers and associations demanded the withdrawal of discretionary powers of the FBR and officers of Inland Revenue and have threatened to go to court over the matter if their demands are not accepted by the authorities concerned.