The Federal Board of Revenue (FBR) has removed a provision requiring the board to notify taxpayers 24 hours before freezing their accounts.
Nonetheless, the business community is outraged by the development, which has been dubbed a “harassment” of filers, according to a report in The News.
Former FBR chairman Shabbar Zaidi made it necessary for tax collectors to notify defaulters before suspending their accounts, keeping the FBR chairperson notified.
In an official statement by Hammad Hussain Jaffri, Secretary Inland Revenue Operations FBR stated “I am further directed to state that in order to implement the law in its true spirit and to re-vest the power vested in the institution of the Commissioners viz-a-viz action under Section 140 of the Income Tax Ordinance, 2001, the instructions referred supra are hereby withdrawn ab-initio.”
Mohammad Idrees, President of the Karachi Chamber of Commerce and Industries (KCCI), stated that the government has claimed to make it easier for investors to do business. However, he stated that removing this provision would have a detrimental impact on the business community.
Former FBR chairman Shabbar Zaidi expressed dissatisfaction with the decision to The News. He stated that the clause was put in place to protect taxpayers from harassment.