LCCI chief says two SROs have created ‘significant’ difficulties for traders

LAHORE: A seminar on the Tajir Dost Scheme 2024 was held at the Lahore Chamber of Commerce & Industry. LCCI President Kashif Anwar presided over the seminar which was attended by Regional Tax Office Lahore Chief Commissioner Ahmed Shuja Khan, members of the LCCI executive committee and a large number of members.

Addressing the seminar, LCCI President Kashif Anwar praised the government and the FBR for consulting traders regarding the Tajir Dost Scheme despite its implementation. However, he said that such consultations should have occurred before the law was enacted to avoid the current situation.

Kashif Anwar said the traders want to pay tax but concerns arise from certain policies. He said the Tajir Dost Scheme should target individuals who are not yet part of the tax net and should be designed it in a way to bring new individuals into the tax net while existing taxpayers should be allowed to opt whether they want to join the scheme or not. He said that those who are filing tax returns for the first time should not be questioned about their assets and capital.

Kashif Anwar discussed the issues arising from SRO 350 and SRO 1842 saying that these SROs have caused significant difficulties for the traders. He called for immediate resolution of the problems associated with these SROs. He also highlighted traders’ long-standing desire for a single-page income tax return form in Urdu. Additionally, he advocated for policy continuity and implementing the Tajir Dost Scheme for at least five years.

He further pointed out that the sales tax limit for traders was previously set at 10 crores but was later reduced to two crores. He proposed increasing the limit for 236H from one lakh to five lakhs and reinstating the limit of 10 crores for sales tax and point-of-sales. He added that any decisions should be applicable for at least five years to facilitate business planning.

He said that that the lack of trust among traders is a major reason for their reluctance to enter the tax net.

Kashif Anwar expressed concerns on the practice of determining sales tax based on the area of a shop or business and said that accurate sales tax assessment should be linked to business sales rather than location or area.

He suggested linking sales tax collection to commercial meter bills amount and implementation of slab-wise taxation. The law currently allows for commercial meters to be disconnected if returns are not filed and he urged the Chief Commissioner to consider these issues and take prompt action to resolve them.

Chief Commissioner Ahmed Shuja Khan appreciated LCCI President for having MOUs with various organizations and new initiatives at the Lahore Chamber. He commended Kashif Anwar for covering the issues related to the Tajir Dost Scheme comprehensively in a short time saying that these issues are already on their radar and steps are being taken to address them.

Ahmed Shuja Khan mentioned that the registration process under the scheme is very simple. He said that many filers are currently submitting null returns for sales tax and should be directed towards making some payments. He assured that the suggestion regarding differentiation between filers and non-filers proposed by the LCCI President will be considered.

He said that work is ongoing on the Tax Regime 2025. Regarding the difficulty of estimating income based on shop location and rates, he agreed with the suggestions from the LCCI President and stated that these matters are under consideration. Although the idea of using commercial meters is noted, he pointed out the challenges of adding more taxes and estimating income from electricity bills. The advance tax system practiced in neighboring countries was mentioned as a reference. He assured that the tax system is supported by the trader community and that every possible cooperation will be extended. Suggestions will be forwarded to the FBR for further consideration.

Copyright Business Recorder, 2024