Reason of low rate of loans is due to lack of planning: FBR

ISLAMABAD: The chairman of the Federal Board of Revenue (FBR), Shabbar Zaidi has said that the reason of the low rate of loans to the small and medium-sized sector (SMEs) was due to lack of planning.

Shabbar Zaidi said that the people belonging to the SMEs sector were apparently not willing to be part of the tax system.

He said that the taxation system implemented in the previous tenures was quite difficult.

Read more: FBR collects Rs320bn in October 2019, says Shabbar Zaidi

According to him, the sector is now facing difficulties to get access to business loans, whereas, the troubles were also hiked due to the slow rate of overall loans in the private sector.

The FBR chairman urged SMEs to focus on documentation of businesses besides being focused on the genre of products to get benefits of business loans from banks.

The FBR chairman said that the current figure of industrial and commercial consumers stood at 3.1 million including 43,000 registered as sales taxpayers.

Also read: Over 7 lac new taxpayers registered: Shabbar Zaidi

Zaidi further added that the lack of documentation and cash remittance are bigger issues for SMEs which also created complications in investment.