Member Domestic Operations (South), Federal Board of Revenue, on the demand voiced by the Chairman Businessmen Group & former President-KCCI, Siraj Kassam Teli and President, Karachi Chamber of Commerce & Industry, Abdul Majid Haji Muhammad announced for pending "non-active, or active but risky" status in e-Profile, remove "risky list" from FBR website till 31st December 2009, and sought KCCI's proposal for improving the system. It was agreed that the term "risky" will not be used and a committee comprising of Member Domestic Operation (South), FBR and Vice Chairman & former President-KCCI, Haroon Farooki will consult and finalize the steps and procedures for e-profiles of the tax-payers; what is in the best interest of tax-payer and FBR. In future, after the decision, a minimum two week notice will be given to the tax-payer to correct and clarify his profile.

A meeting was held today at KCCI, to address and resolve the issue of change in e-profiles, terming the tax-payer "risky". Member Domestic Operations (South), FBR, Muhammad Ramzan Bhatti along with Director General, RTO-Karachi, Imtiaz Ahmed Barakzai, G.M. PRAL, Imtiaz Ahmed and other officials participated in the meeting.

Chairman, Businessmen Group and former President-KCCI, Siraj Kassam Teli, demanded for the removal of "risky list" from FBR website and also remove "risky" term reflecting in the e-profiles of tax-payers, specifically the commercial importers. He suggested to make a committee comprising of FBR officials and KCCI representatives and gave the name of Vice Chairman Businessmen Group and former President-KCCI, Haroon Farooki to lead the KCCI representatives. The Committee Members from KCCI will comprise of a member from various sector. Siraj Teli focused that KCCI appreciates all the positive measures taken however FBR should consult stakeholder before executing new measure to avoid its adverse effects.

President-KCCI, Abdul Majid Haji Muhammad drew the attention of Member, Domestic Operations (South), FBR, towards difficulty and problem being faced by KCCI members as several of its members' sales tax profiles have been changed to "Inactive or Active and Risky". He said that about 80% of the importers have been placed under the heading "RISKY" by the FBR. Therefore, many of KCCI members who are also honourable tax payers and made purchases of goods from importers / suppliers have stopped making payments as their suppliers have been classified as RISKY. The above action of FBR has created harassment among business community which might result in huge losses to the Government as most of the taxpayers have stopped purchasing / selling from these (RISKY) taxpayers/KCCI members, he added while demanding rectification for the problem.

Vice Chairman & former President-KCCI, Muhammad Zubair Motiwala lamented that KCCI and other stakeholders were not taken into confidence before introducing the change in the system therefore FBR is facing its adverse reaction. He voiced that the term "risky" on e-profiles has highly affected the business of buyers as well as suppliers. He suggested that FBR is aware about the wilful and non-wilful tax-payer and it should evolve strategy for discrimination between both and handle them accordingly. He was of the view that to finally resolve the problem, ATT, Customs Regulations and under-invoicing issues needs immediate revisit.

Vice Chairmen & former Presidents-KCCI, Haroon Farooki and Anjum Nisar suggested for pending the issue, meanwhile create awareness and implement the system from 1st January 2010. They also suggested to remove the term risky with an appropriate word which would not hurt the credibility of persons who are paying taxes from years. They also demanded for prior intimation in the form of any notice to the tax-payer and FBR should take action in case the tax-payer fails to respond to the notice.

Chairman, Taxation Sub-committee of KCCI, Qamar Usman elaborated the issue of e-profiles and lamented that the action taken by the FBR without providing any opportunity to explain the taxpayers their position before changing their profile is unlawful and void. He asked under what rules, regulations and law term "Risky" defined. He said that this was also against the understanding between KCCI and FBR, reached in the meeting of 26th September at RTO Office Karachi, that KCCI will be kept in confidence if any major steps are taken by the FBR.

Member Domestic Operations (South) FBR said that, in this context, the system is under experimental phase. He welcomed the suggestions of KCCI to improve the system under joint committee of FBR & KCCI, he articulated that after deliberations, the system will be reintroduced from 1st January 2010 and FBR will send an e-notice to tax-payer for fulfil the shortcoming and in case of no response from tax-payer, system will highlight the status of tax-payer accordingly.

Meeting was densely attended by Senior Vice President-KCCI, Rasheeduddin Rashid, Vice President-KCCI, Javed Ahmed Vohra, former President-KCCI, A.Q. Khalil, former SVP-KCCI, Jawed Bilwani, former VP-KCCI, Haroon Agar, Managing Committee Members of KCCI, representative of various trade associations and business community.