ISLAMABAD: The Federal Board of Revenue has accepted to appoint two members of traders’ associations in each of the 17 Regional Tax Offices throughout Pakistan, which is a structural change that provides the trading sector a formal place in the regional taxation administration of Pakistan for the first time. This decision of FBR trade representatives in RTOs was made after a discussion between the senior officials of FBR and All Pakistan Sarafa Gems and Jewellers Association.
The President of the Association, Qasim Shikarpuri, called the session highly positive and successful, emphasizing the fact that during the discussions, many problems experienced by the jewellers’ community, taxation problems, and methods of fostering mutual cooperation were discussed.
FBR Provides Guarantee Regarding Trader Harassment
The RTOs agreement regarding the FBR trade representatives has been followed by an important guarantee from the tax department. The authorities of the FBR have assured that all those traders who pay taxes according to the rules and regulations laid down by the law would not be harassed, and complete cooperation would be extended to them by the Regional Tax Offices.
“Traders who pay taxes according to the law will not be harassed and will be given full cooperation.”
FBR assurance to All Pakistan Sarafa Gems and Jewellers Association
The nomination of trade representatives for each RTO ensures that there is an operational system in place to facilitate the assurance because traders will have someone who can address their concerns regarding enforcement activities without going through the entire complaint procedure.
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Implications of 17-RTO System in Reality
In the FBR trade representatives RTO system, there are 17 Regional Tax Offices in Pakistan. As two nominees of the trade association have been appointed to every office, there will be 34 points of liaison between the traders and RTOs throughout the country.
These representatives will be the initial point of contact for traders in case of any tax problem, the medium through which problems can be communicated, and the means through which the guidance provided by the association is conveyed to the traders dealing with the RTO officials.
Shikarpuri Issues Clear Guidance to Traders
Association President Shikarpuri used the post-meeting statement to deliver direct and unambiguous guidance to traders across Pakistan:
- Mismatched returns: Traders whose tax returns do not match their declared assets must revise their filings immediately
- Nil returns: Those who filed Nil Returns must correct their submissions without delay
- Advance tax: All traders must submit advance tax payments on time and without exception
- 30% increase requirement: Traders who already filed accurate returns must ensure their payments reflect a 30 percent increase over last year’s tax in line with FBR instructions
- Zero tolerance for bribes: No payments under the table, no informal settlements — all matters must proceed with complete transparency and through the association’s nominated representatives
Mutual Trust Between FBR and Trade
The FBR’s RTOs trade representatives program is an example of a wider understanding – on the part of both the FBR and the association – that the “antagonistic relationship” which has traditionally existed between FBR and trader is not beneficial to either side.
According to Shikarpuri, he hopes that through continuous interaction, mutual trust, and cooperation between FBR and trade, past misunderstandings will be overcome and good results achieved for the jewellery and sarafa tradesmen of the country.
The meeting between senior FBR officer Bilal Azhar Kayani seems to have laid down the necessary groundwork to turn this hope into reality, through 34 trader nominations who are sitting within the region’s tax offices of Pakistan and acting as a bridge between two communities which need each other’s collaboration for tax collection purposes.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
