By Commerce Reporter
LAHORE: All Pakistan Textile Mills Association (APTMA) Chairman Mr Kamran Arshad has condemned the Federal Board of Revenue’s (FBR) recent demand of submitting affidavits regarding buyers and sellers, saying that registration of FIRs on this account is unlawful.
He was addressing a press conference at APTMA Lahore office. Senior Vice Chairman APTMA Mr Jamil Qasim, Vice Chairman Mr Shehzad Ahmed Sheikh, Chairman South Zone Mr Naveed Ahmed, former Chairmen Mr Abdul Rahim Nasir and Mr Adil Bashir besides Secretary General Mr Shahid Sattar Mr Mohammad Raza Baqir were also present on the occasion.
Mr Arshad said the FBR’s requirement for member mills to submit affidavits guaranteeing that all buyers and suppliers in their supply chain have deposited tax and furnished correct returns is unjustified. Registration of 41 FIRs against different industrial units, including 12 FIRs against member mills of APTMA, is highly condemnable, he stressed.
He argued that the Sales Tax law only mandates buyers to verify suppliers’ Active Taxpayers List (ATL) status and ensure payments through banking channels.
“This demand exceeds legal provisions and places an unrealistic burden on our members,” Mr Arshad said, adding that buyers cannot be expected to investigate the entire supply chain; it’s akin to asking them to perform a policeman’s role.
He said all the APTMA members are reputed exporters and arresting their Chief Financial Officers without first adjudicating civil financial liability is unlawful and creates harassment, fear, and business closures.
Mr Arshad emphasized that APTMA has always encouraged tax compliance but refused to hold the textile industry responsible for others’ wrongdoing. Instead, he proposed enhancing trade bodies’ role in supporting FBR’s compliance efforts.
“The government should focus on creating a conducive business environment, increasing trade volumes, and enhancing tax collection,” Arshad urged. “Genuine taxpayers are being subjected to undue pressure through repetitive demands and fabricated cases, despite complying with documentation requirements.”
The hostile business environment, Mr Arshad warned, is driving industrialists to consider shutting down factories and scrapping machinery. “FBR’s actions are making it impossible to do business in Pakistan.”
Speaking on the occasion, Mr Abdul Rahim Nasir pointed out that FBR has taken action against the member mills without issuing a show cause notice, which is against the spirit of law.
Mr Adil Bashir urged the FBR to stop harassing by taking unilateral and anti-business steps.
Mr Jamil Qasim feared that the FBR’s action would lead to further closures amidst rising disappointment among industrialists due to multiple reasons.
Mr Naveed Ahmed stressed that the FBR should put its house in order and eradicate system discrepancies instead of pressurising the industry.
Mr Shahzad Ahmed Shaikh said the FBR could not blame the industry for the previous wrongdoings of suppliers and buyers.
Mohammad Raza Baqir said the law has not been followed in letter and spirit while dealing with the issue.
