KARACHI June 15, 2011: “The reforms process in tax administration is entering its last phase; however, despite efforts the tax machinery has not overcome its capacity and integrity issues as yet”. This was stated by Khawar Khursheed Butt, Member Inland Revenue, Federal Board of Revenue while addressing the Federal Budget Seminar organized by the Southern Regional Committee (SRC) of Institute of Chartered Accountants of Pakistan (ICAP) here at Defence Authority Country & Golf Club, Karachi.
In his speech, the Member IRS dilated upon cause of revenue shortage, the uphill task of coming year’s revenue target and other policy matters. He admitted that by effective monitoring of withholding taxes, the government can enhance its revenue stream. “I have asked the Chief Commissioners not to focus on audits but on effective monitoring of withholding taxes where non compliance and leakage is more than expected”, Butt added. He said that recent exercise conducted by tax authorities revealed that few banks are involved in emblazonment of withholding taxes deposited by taxpayers and major recoveries have been made from such banks.
Earlier, Khalilullah Shaikh, Convener SRC in his welcome address highlighted the importance of the event. On the occasion, Syed Masood Ali Naqvi, Senior Partner KPMG Taseer Hadi & Co. Chartered Accountants gave a presentation on “Macro Economic Aspects of the Budget”. He covered key objectives of budget 2011-2012, key challenges and growth framework. A presentation on amendments proposed in “Direct Taxes” was given by Ebrahim Yaqoob Sidat, Country Managing Partner, Ernst & Young Ford Rhodes Sidat Hyder Chartered Accountants.
S.M Shabbar Zaidi, Partner, A.F.Ferguson & Co., in his presentation on “Indirect Taxes” covered economic inequality and rebellion, misnomers about IMF, free markets, duty differential raj, estimated collection & expected / actual shortfall, inequitable distribution of taxes, sales tax, federal excise duty and Sindh Sales Tax on Services Bill 2011.
More than 1300 participants from different national and multinational companies, public and private sector entities, government authorities, members of ICAP & ICMAP attended the seminar. At the end, Mr. Saad Kaliya, Chairman SRC presented his vote of thanks.