The time limitation of granting stay for recovery of arrears from registered persons by Commissioner Inland Revenue Appeal under section 45-B(IA) of S.T Act, 1990 should not be restricted to 60 days but till the decision of appeal as it is against the principals of natural justice and equity. This was stated by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) in its proposals being prepared under the Chairmanship of Syed Mazhar Ali Nasir for the forthcoming Federal Budget 2018-19.

It added that the provision is not in conformity with the various judgments of the High Courts and article 201 of the Constitution of Pakistan which says that recovery proceeding cannot be initiated until decision of one independent forum.

The FPCCI proposal also says that Appeal should be heard by a person who is not under the administrative jurisdiction of FBR at all as tax officer at 1st Appellate forum is posted from FBR’s administration and therefore normally works under the influence of FBR. This would facilitate the taxpayers in speedy and fair dispensation of justice on the one hand and reduce the workload of Higher Courts.