KARACHI: The KSE Brokers Association has demanded penal action against Regional Tax Office (RTO) Zone-1 for demanding illegal duty from tax complaint stocks brokers.
Yasin Lakhani, president of the association, said members of the Karachi Stock Exchange (KSE) had been served notices / orders to pay federal excise duty for the years 2011 to-date, which due to public pronouncement of the Federal Board of Revenue (FBR) was never collected by them
.”Despite having met the chief commissioner Regional Tax Office (RTO) and the commissioner Zone 1 to explain that the demand of the federal excise duty is illegal and unconstitutional as members of the Karachi Stock Exchange have been paying the sales tax on services to the Sindh Revenue Board (SRB) after passing of the 18th Constitutional Amendment since July 1, 2011, the FBR’s demand tantamount to double taxation, raising the levy to 34 percent.” The FBR had been quiet since 2011 and suddenly the members of the KSE are being served back-dated notices and orders.
“This shows the mala fide intention of the Regional Tax Office led by the commissioner concerned who had demanded bribe to withdraw such notices / orders, which were not acceded to,” Lakhani said.
The KSE Stock Brokers Association calls upon the federal finance minister to immediately address the problem in a manner that the tax compliant and fully documented members of the exchange are not harassed, threatened, discriminated and subject to illegal extortion.