LCCI Stresses Facilitating Taxpayers Amidst Economic Challenges

LAHORE, (UrduPoint / Pakistan Point News - 16th Mar, 2024) Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar has penned a letter to Prime Minister Shahbaz Sharif to highlight critical issues, being faced by taxpayers and stressed facilitating them by abolishing additional tax burden.

A copy of the letter was also sent to Federal Minister for Finance and Revenue, and the Chairman of Federal board of Revenue (FBR), according to LCCI spokesman here Saturday.

LCCI President said that recent amendments introduced by the Federal Board of Revenue (FBR) through SRO 350(I)/2024, dated 7th March 2024 which perceived as disproportionately impacting tax-compliant entities and hindering private sector expansion.

He said that the electronic return filing requires commissioner approval through the Integrated Risk Information System (IRIS) if sales surpass five times the capital and non-submission of balance sheet within thirty days. It will create undue hardships for the compliant taxpayers and force them to move out of the tax net.

The SRO also states that the individuals, association members, or directors of single-shareholder companies would be mandated to undergo biometric verification at a National Database and Registration Authority (NADRA) e-Sahulat Centre during the month of July every year. The taxpayer, who fails to comply with this requirement, would not be able to file his electronic return without the prior approval of the Commissioner.

He said that inder the provisions of the same SRO, failure on the part of the seller to submit a return by the stipulated deadline would result in adjustments being made to the buyer's return. The Integrated Risk Information System (IRIS) would subsequently eliminate invoices from the non-compliant seller and correspondingly deduct input tax credit from the buyer's return.

He also pointed out the SRO 1842(I)/2023 dated 21.12.2023 which says that a retailer whose deductible withholding tax under Section 236H of the Income Tax Ordinance, 2001 exceeds Rs. 100,000 during the last 12 months is liable to integrate with FBR's Point of Sale (POS) system. This has restricted the sales of a retailer to Rs 20 million for POS integration.

While acknowledging governmental efforts to promote documentation and broaden the tax base, Kashif Anwar underscores the unintended consequences of current policies, which risk squeezing compliant taxpayers and stifling economic activity.

He urges for collaborative efforts between stakeholders and governmental bodies to devise inclusive policies that incentivize tax compliance while fostering business expansion.

LCCI President called for envisioning a complete turnaround of Pakistan's economy through proactive measures that prioritize taxpayer facilitation and economic revitalization. He said that there is a dire need to make policies for those who are not in the tax net.