FPCCI, SRB discuss tax challenges facing business community

KARACHI: Atif Ikram Sheikh, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has apprised that the apex trade body has hosted a high-level meeting with Dr Wasif Ali Memon, Chairman of the Sindh Revenue Board (SRB), at FPCCI.

The meeting focused on resolving key tax-related challenges faced by the business community, particularly in the services sector.

Atif Ikram Sheikh highlighted concerns over delays in tax refunds, double taxation, and the need for transparent and cost-effective refund procedures.

He emphasised that abrupt enforcement of new tax laws without stakeholder consultation increases the cost of doing business and urged the formation of a joint committee to resolve outstanding issues between FPCCI and SRB.

Atif Ikram Sheikh appreciated the SRB chairman’s facilitative approach and called for incentives for indenters and a simplified registration process with a clear timeline. An FPCCI proposal to reduce SST from three percent to one percent was discussed with Chairman SRB during the consultative session.

In response, Dr Wasif Ali Memon recalled his long-standing association with FPCCI members from the time of his tenure in Pakistan Customs and agreed to forward FPCCI’s recommendation on curtailing the tax rate on indenters to one percent to the CM House for consideration of Sindh’s provincial cabinet.

Dr Wasif Ali Memon clarified that SRB’s tax rate stands at a maximum of 15 percent and highlighted the board’s taxpayer-friendly measures, including a two-minute only waiting time for visitors, minimal FIR filings (only two in 15 years), and QR code-based incentives.

The chairman assured immediate processing of certified refund claims and simplified appeal procedures.

On the issue of indenters’ cases pending in the Supreme Court, the SRB chairman proposed a meeting between SRB and indenters’ legal representatives to explore out-of-court settlements and encouraged litigants to follow the example of voluntary tax-compliant indenters.

He acknowledged documentation hurdles in SRB registration and assured that unnecessary requirements would be eliminated, in line with the Sindh chief minister’s directives.

Saquib Fayyaz Magoon, Senior Vice President FPCCI, elaborated on challenges faced by freight forwarders and indenters – including high tax rates and taxation on gross invoices.

He called for out-of-court settlements for ongoing litigations, nomination of a dedicated SRB focal person for swift issue resolution, and an industrialisation package.

Copyright Business Recorder, 2025