SARGODHA: In response to the ongoing strike and allegations of harassment leveled by the stone crushers against the officials, the Federal Board of Revenue regional office has clarified that the Section 40(B) of the sales tax has been implemented for the stone crushers and coal mines, two important business sectors of the Sargodha region.

With the objective of estimating the actual production of both sectors, 16 teams have been deployed at stone crushers in Sargodha and 22 teams at coal mines of Khushab, according to the bureau officials. These teams are headed by Deputy Commissioner Inland Revenue Chaudhry Naeem and Deputy Commissioner Inland Revenue Ali Saleh Kalyar who initially noted the production activities of these sectors for a month.

The spokesman of the regional office of FBR has alleged that both the sectors are not depositing their tax dues with the national exchequer.

According to the FBR spokesperson, as per the information provided by the officials of Faisalabad Electric Supply Company (Fesco), stone crushers used 92m units of electricity annually. On this basis, the total production is estimated to be worth about Rs50bn and according to a limited estimate, the national exchequer is losing about Rs10bn annually based on the current sales tax rate. In the coal sector, not only sales tax is not being paid but fake sales tax invoices are also being traded. He says that legal action is underway against these elements and soon the involved persons will be punished as per the sales tax laws.

Stone crushers warn of sit-in in front of board office

In the past, many meetings were held with the officials and leading people of these two sectors to increase the tax collection significantly, but it did not yield any positive effects.

It was further added that FBR was determined to continue its struggle against tax evasion so that the country’s difficult economic conditions can be improved.

An important meeting was held on Friday regarding the strike by the owners of stone crushers. It was presided over by Sargodha Deputy Commissioner retired Capt Shoaib Ali while DC Inland Revenue Ali Saleh Kalyar and representatives of stone crushing units owners were also present on the occasion.

In the meeting, the owners of stone crushers expressed their concerns, saying that under Section 40-B of the income tax laws, the appointment of the FBR staff should be terminated and they should be exempted from tax. Otherwise, they will stage a sit-in in front of the FBR regional office in Sargodha.

The FBR representative explained that there was no scope in the law for this type of exemption and every sector had to contribute its share to taxes to run the country. He said the demands of the stone crushers had already been sent to the FBR and that the doors of our office were open to them.

DC Shoaib Ali has advised the stone crushers to resolve their issues in mutual consultation with the FBR officials and strictly according to the law.

Adherence was advised. He emphasized that creating problems for the public under the guise of protest should be avoided. The DC said that any kind of negative thinking will not be entertained so the stone crusher owners should address their concerns within the ambit of the law.

Published in Dawn, January 6th, 2024