Notices to Fish Exporters: FTO Calls Inquiry against Tax Officials

Muhammad Haris

The Federal Tax Ombudsman has called for an inquiry against tax officials in Karachi who have served notices to fish exporters, amounting to billions of rupees, causing distress in the business community and disrupting overseas shipments.

The FTO has requested an inquiry into this matter. According to the FTO’s order, the export of fish products, primarily to China, Thailand, and Middle East countries, contributes to foreign exchange amounting to US$450 million. This income helps reduce the trade deficit.

The Commissioner’s approach involved forming a team, including lRAOs and soon-to-retire officers.

They obtained bank statements, scrutinized credit entries, accused exporters of unexplained income, and concealed taxable sales to unregistered persons.

While exporters pay 1% as export proceeds in income tax, export sales tax is zero-rated. Show cause notices, threatening unexplained income and suppressed taxable supply, were withdrawn in questionable ways.

Assessment orders, often one page long, seem to reflect corrupt motives for extortion. Cases where exporters contested notices resulted in billions of rupees in taxes, yet many were annulled or set aside.

In summary, the assessment proceedings appear dubious, displaying characteristics of being perverse, arbitrary, unjust, biased, and oppressive. This indicates administrative excesses by the Commissioner, Zone 1, RIO-i Karachi, and their team during the period from 01.07.2021 to 31.12.2022.Pakistan’s Sugar Sector Hits Record 78% Profit Surge in FY23

The FBR is directed to initiate a Fact-Finding Inquiry, to be conducted by the Directorate General l&l-IR.

The Directorate General is instructed to provide a report to the FBR within 60 days, and the Management & HR wing should take appropriate action based on the findings within 90 days, against officers/officials found involved in maligning FBR, harming the export-oriented sector, compromising national interest, and impeding foreign exchange inflow for the country.