The Lahore Chamber of Commerce and Industry (LCCI) has taken a strong exception to the Federal Board of Revenue for introducing unjustified amendments to be incorporated in Sales Tax and Federal Excise Duty Return Forms.
The LCCI President Shahzad Ali Malik, while showing his concern over the amendments, in a statement on Thursday sought the Federal Finance Minister's help for withdrawal of amendments and said that LCCI has very strong apprehensions that the proposed amendments will have devastating effect on the businesses in Pakistan.
He said that the proposed return requires feed details of each and every sale or purchasing transaction/invoice at the time of online submission of return. It will almost be impossible to provide details of each and every transaction online. Secondly it will increase the cost of compliance for the tax payers who are already facing the brunt of sheer price hike, economic recession and poor security situation in the country, he added.
Malik said that the proposed return also requires that NTN or CNIC number of each and every purchaser or seller should be provided with the return. He said that given the literacy rate in the country and lack of compliance culture in general masses it will be very difficult to obtain such personal details from the buyers or sellers of the goods. Furthermore, there is another requirement to provide summary of stock on monthly basis. This is also not practically possible.
He said that these and many other proposed changes in the tax returns would strangle the already crisis-hit businessmen in the country. "We feel that the tax department is shifting its burden of monitoring and tracking of the tax system on business community, which is unjust and unethical. We urge the government to make simple and easy procedures for increasing revenue collection, as people do not want to join the tax net due to the complex taxation system, he added. The LCCI President urged the Finance Minister Dr Abdul Hafeez Sheikh to help withdraw the proposed amendments.
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