‘Balanced, transparent, business supportive sales tax system is a must’

FAISALABAD: A balanced, transparent, compliant and business supportive sales tax system is imperative and FBR as well as business community must collaborate to achieve these objectives within the given circumstances, said Rehan Naseem Bharara, President Faisalabad Chamber of Commerce & Industry (FCCI).

Commenting on the recent sales tax affidavit requirement, he said that FCCI fully supports the Federal Board of Revenue’s efforts to tackle tax fraud and promote transparency in sales tax practices.

“Eliminating fake and flying invoices is essential for a fair tax system,” he said and added that FCCI recognizes the importance of addressing these serious issues, adding that the recent action taken by FBR without giving prior notices and targeting the businesses have created harassment. He said that the requirement for CFOs to submit monthly affidavits alongside sales tax returns has raised concerns within the business community.

Quoting the recent LTO Karachi seminar, he said that it is unrealistic for CFOs to verify every transaction within their supply chain. He further said that this requirement has added an undue burden on businesses and is legally questionable, especially when it was applied without prior consultation.

“Transparency must work both ways to ensure compliances,” he said and proposed that tax accountability for the department should also be enforced to promote fairness and rebuild trust between the FBR and the business community. He expressed concerns over delays in appeals and legitimate refunds of billions of Rupees which was adding unnecessary financial burden on the business community.

He urged the FBR to address these issues with chambers and trade bodies for a balanced approach to ensure a transparent tax system that supports businesses while ensuring compliance. He said that FCCI is fully committed to collaborate with the FBR in developing a practical solution that promotes both transparency and ease of doing business.

Copyright Business Recorder, 2024