Karachi: Suleman Chawla aActing President FPCCI apprised that entire business, industry and trade community is of view that Section 7E introduced in Income Tax Ordinance (ITO) 2001 through Finance Bill 2022 has categorically proven to be not only chaotic for economic activities but also futile and ineffective as it has only generated Rs 9 billion in first 10 months of its implementation.

He proposed that federal budget 2023-24 is an opportune time to listen to longstanding concerns of business community and called upon Ishaq Dar Minister for Finance and Revenue to capitalise on this opportunity to earn goodwill of business community. Abolishment of Section 7E in ITO 2001 would prove to be tangible confidence building measure for stakeholders of country’s economy and will impart sense of being heard by their government, he added.

He questioned rationale and efficacy of issuing thousands of income tax notices to filers who were subjected to harassment and experienced psychological pressures due to those unfair, arm-twisting, ill-prepared and copy-paste notices.

FBR’s Income Tax Department seems to be uninformed of ground realities as introduction of new provision in Income Tax Ordinance 2001 in form of Section 7E means squeezing existing taxpayers even further instead of exploring new avenues and broadening tax base.

He demanded that all existing show cause notices under Section 7E should be withdrawn with immediate effect. Income of an amount equal to 5 percent of fair market value has been demanded for capital assets and immovable properties held by concerned persons.

Zakaria Usman Convener of FPCCI’s Budget Advisory Council explained that 7E is levy of Income Tax on immovable properties which under constitution is provincial subject and is also tantamount to double taxation. Real Estate and construction sector would suffer directly due to 7E.

Published in The Daily National Courier, May, 26 2023

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