LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has formally appealed to the Federal Board of Revenue (FBR) concerning the recent enactment of Statutory Regulatory Order (SRO) 350(I)/2024, which modifies the Sales Tax Rules of 2006. According to the Chamber, the amendments introduced by the SRO significantly affect businesses categorized as individuals, associations of persons, and companies, excluding manufacturers.
Kashif Anwar, President of the Lahore Chamber of Commerce and Industry, has stressed that these amendments place a disproportionate burden on businesses that are already compliant with tax regulations. He has expressed concerns that the SRO would hinder efforts to promote documentation within businesses, particularly impacting retailers who are already within the tax framework. Anwar highlighted the challenges faced by retailers across 21 different sectors/products, citing their lack of expertise, technical know-how, and financial resources.
Anwar elaborated on the practical implications of the SRO, emphasizing the requirement for biometric verification. While acknowledging the potential benefits of this measure, he cautioned that its implementation would pose additional logistical challenges for businessmen. Anwar warned that failure to comply with this requirement would result in restrictions on electronic return filing, necessitating Commissioner authorisation through IRIS.
Addressing the repercussions for businesses, Anwar articulated concerns regarding the ramifications outlined in the SRO. Under its provisions, 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, recalculating the buyer’s tax liability based on the remaining invoices.
Anwar elucidated that electronic return filing may require Commissioner approval through IRIS if sales surpass five times the capital, expressing apprehension regarding the augmentation of discretionary authority vested in officials. He voiced concerns over the regulatory framework, asserting that existing rules and regulations impose undue burdens on those already compliant with tax obligations. Anwar criticized the approach of the Federal Board of Revenue (FBR), contending that instead of expanding the tax base to include new taxpayers, the FBR is exerting pressure on existing taxpayers, exacerbating their fiscal responsibilities.
Copyright Business Recorder, 2024