ISLAMABAD: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) in one of its Pre-Budget proposals being prepared under the guidance of its Senior Vice President, Syed Mazhar Ali Nasir has urged the government to reduce the penalty for failure to furnish statements U/S 115; 165; 165A or 165B of the Income Tax Ordinance 2001 from Rs. 2,500/day to Rs. 500/day subject to a maximum penalty of Rs. 10,000.
The proposal argued that the present quantum of penalty worked on the above basis is too harsh and highly unreasonable. It elaborated that in many cases, practically the quantum of penalty is much more than the actual tax liability of an assessee.
It added, “The taxpayer is required to pay default surcharge at a much higher rate than the compensation paid to him by the FBR for delay of his refund U/S 171 @ KIBOR+0.5% and therefore, the rates of default surcharge and compensation may be brought at par”.