Chief Commissioner Inland Revenue, Hyderabad, Abdul Khaliq Shaikh, has stated that the Federal Board of Revenue (FBR) has adopted a strict zero-tolerance policy against any harassment of traders and industrialists. He emphasized that if any complaint of harassment by an officer is proven, the official concerned may even lose their job.
He expressed these views while addressing members of the business community during his visit to the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI). He said that FBR is responsible for implementing tax laws enacted by the Government of Pakistan, while trade bodies and chambers have the legitimate right to raise their voice and propose amendments or improvements to the laws through proper channels.
He added that facilitating the business community remains FBR’s top priority. However, he remarked that no nation in the world is ever fully satisfied with its tax policies, and that only through mutual trust, consultation, and cooperation can the national economy be strengthened.
The Chief Commissioner further noted that there is already a strong liaison between the Hyderabad Chamber and the Regional Tax Office (RTO) Hyderabad, and efforts will be made to make this coordination even more effective.
He assured traders that Commissioners and officers at the RTO are always available to guide on taxation matters. He advised the business community to treat FBR notices as formal communications and respond within the stipulated time, and in case of a show-cause notice, to immediately contact the RTO so that the matter may be resolved in accordance with the law.
He also highlighted that the Digital Invoicing system has been introduced by the government, and awareness seminars will be organized jointly with the Chamber to fully educate the business community about the new system. Earlier, in his welcome address, President HCSTSI Muhammad Saleem Memon stated that traders and industrialists play a vital role in the national economy and have always stood by the state during challenging times. He said that the business community seeks a fair, simple, and transparent tax system.
He emphasized that if chambers and trade bodies are formally consulted during the formulation of tax policies, the tax net can be significantly expanded. He assured full cooperation of the Chamber with FBR in promoting digitalization, tax awareness, and voluntary compliance.
On the occasion, Convener FBR Sub-Committee and Chamber Patron Haji Yaqoob highlighted operational challenges faced at the field level, stating that there is a need to simplify audit procedures, notices, and sales tax mechanisms to prevent unnecessary complications for traders. He proposed the establishment of a permanent liaison committee between the RTO and the Chamber to ensure timely resolution of grievances and removal of ambiguities. He added that proper guidance on digital invoicing and other reforms would substantially improve tax compliance.
The Advisor to the FBR Sub-Committee of the Chamber, in his address, stated that the business community is facing numerous legal and practical challenges in matters relating to audits, notices, and recovery proceedings.
He pointed out that the powers granted under Sections 177, 120, 138, 214C, 140, and 175 of the Income Tax Ordinance, 2001 must be exercised with balance and transparency to ensure that the business sector is not subjected to undue pressure. Similarly, he emphasized that greater facilitation and prudence are required in the implementation of Sections 7, 8, 73, 37, and 38 of the Sales Tax Act, 1990, particularly in matters concerning input tax adjustment, search, and seizure. He further observed that stringent conditions related to the Active Taxpayers List (ATL), heavy penalties, and technical complexities are creating difficulties for traders. He urged the introduction of a simplified, fair, and facilitative system, the establishment of an effective help desk at the Regional Tax Office, and the provision of protection to businesses during the pendency of appeals to promote voluntary tax compliance.
Among others present on the occasion were Commissioners Naib Ali Pathan and Shamim Ahmed, Additional Commissioner Hasnain Ahmed Hali, Chief Patron Seth Ameen Khatri, Patron Masood Pervez, former presidents of the Chamber, members of the Executive Committee, and various conveners.