WEB DESK: Advisor to Prime Minister on Revenue Haroon Akhtar Khan has assured the vendors of computers and computer accessories to contemplate for making their proposals part of the Finance Bill to further regulate the market where the industry guaranteed additional revenue of Rs 1.3 billion annually.
This, he stated, during a meeting with a delegation of Pakistan Computer Association (PCA) led by its Chairman Munawar Iqbal at the Federal Board of Revenue (FBR) during budget preparation exercise.
The meeting was attended by FBR Member Customs FBR, Nasir Masroor Ahmed, FBR Member Inland Revenue Policy Rehmatullah Khan Wazir, President FPCCI, Rauf Alam and senior office bearers of the PCA Yousaf Jamal, Abdullah Malik, Basharat Balouch, Zaka ur Rahman, Umar Farooq, Khawar Mahmood, Arshad Janjua, Abrar ul Haq, and Muhammad Younis.
Haroon Akhtar Khan said that the PCA’s suggestion to regularise the IT market to raise maximum revenue was very genuine for which data analysis is underway.
He said that by utilising data of computer market, he will take further suggestions from the PCA, and would definitely support inclusion of viable proposals in the finance bill for the coming budget.
He asked the IT traders to identify the Khepia groups so that action could be taken against them and also to do more research in the market to gather an accurate database to build up their case.
“As we want to support the IT industry in this age of information technology and we want to get you out of the troubled situation,” Haroon said, adding the government was working to strengthen the tax enforcement procedure but did not want to harass the business community.
“We want to provide a way out to them and stability of the market for greater revenue generation,” he said.
Munawar Iqbal, in his remarks, said that the market was facing challenge of illegally channelled laptops with local warranty.
“These products are the bone of contention as they are distorting market with the help of Khepia which are still working in the larger markets,” Munawar said.
“So, we request you to take action against them,” he demanded.
Munawar also referred to the Khepia’s intervention in money transfers for import purposes due to which the traders have to opt for under-invoicing which results in accusation of money laundering and harassment by the FIA officials.
FPCCI President Rauf Alam, in his remarks, said that the PCA’s cause and their proposals for the budget were genuine and needed to be listened and included in the coming budget.
He said the IT business is in serious trouble and market is suffering from the Khepia culture and called upon the PM Advisor to sympathetically consider their proposals for rationalisation of tax culture as it was for mutual benefit of the IT traders and the FBR.
Others who spoke on the occasion including the senior vice chairman of PCA, Yousaf Jamal, called for acceptance of the PCA proposals to save the market.
Basharat Balouch, the vice chairman PCA, gave an overall view of the IT markets in the country and Umer Farooq, executive member of PCA highlighted the GST issue.
Arshad Janjua praised the government for promotion and growth of information technology while Abrar-ul-Haq urged the government to implement the PCA proposals for mutual benefit.
Earlier, the PCA delegation submitted their proposals in which they stated that the underlying objective is to propose measures to rationalise the tax structure, encourage documented economy, broaden tax base, curb smuggling and help flourish smooth and business friendly environment in the country.
The PCA submitted a comprehensive data sheet comprising list of a wide range of IT products with a view to help the government in its effort for accelerated revenue collection and socio-economic uplift.
In its proposals, the computer association said that among the estimated 600,000 laptops sold every year, 25% are imported legally and the rest of 75% are brought through illegal channels. – Business Recorder